Fortunately, it is easy to do this using the information from a recent paycheck stub.
Here’s how to calculate it and how to use this information.
The taxes on your paycheck:
Some human beings incorrectly count on that the difference between their gross pay and their final net pay is due to taxes being withheld.
For example, if the gross pay is $2,000 and the paycheck is for $1,500, they may additionally expect $500 went to taxes.
However, the truth is a bit more complex.
There are quite a few deductions that can come out of your paycheck, together with these taxes:
Federal income tax: You may additionally see this listed as “Federal,” “Fed Tax,” or some other variation. This is the tax withheld through the IRS.
State profits tax: If your state has an income tax, a portion of your paycheck will be withheld for this purpose.
Local taxes: Some cities and counties have their income taxes as however, this isn’t always terribly common.
Social Security taxes: May be listed as “SS” or “FICA.” For 2015, you may have 6.2% of your paycheck withheld for Social Security taxes, up to the first $118,500 you earn. Unlike income taxes, Social Security taxes are now not refundable at the end of the year.
Medicare taxes: Taxed at a rate of 1.45%, Medicare taxes are no longer refundable, as well.
Tax refund estimator pay stub
You can use this calculator to find out the numbers for your 2019 tax return estimate.
This tax refund calculator can be used for free and here are the basic steps:
Firstly, input your personal details and W-2 pay for the year 2019
Go to the business/self-employed section to input your income details
Press the orange ‘Calculate’ button to see the results or select ‘detailed results’ for a breakdown of the figures
Aside from taxes, there are many other feasible non-tax deductions.
For example, it’s frequent to have insurance benefits, retirement contributions, flexible spending account contributions, and union dues deducted.
Therefore, it’s a good idea to see the graph that they formulate for you automatically.
This free calculation is a good starting point and you can use it to show your CPA or tax accountant for a speedier tax filing.
➡ Did you find this post useful… Would you be interested in an easy and detailed guide on how to make money online?
If you would, or you have questions regarding this post, let me know in comments below.
Questions? Ask in comments >>
Did you like this post/method?… Let me know in comments.
Tax Twerk is a digital platform to read about personal finance and wealth for freelancers and self-employed entrepreneurs. We help people to get good deals on products and services online, which can save them money.
Sign Up to Get the Latest Offers
Enter Your Email Address to Receive free access today: