For very few business owners and investors, filing tax returns and paying their taxes is like a walk in the park, but taxes can be a bore for many others! But tax calculator tools can help! Every tax season, we hear taxpayers complain about the stress of annual tax filing and how long it takes to file their taxes on their own. And let’s not get started on the critical part- calculating your possible savings.
Let’s also not forget about threading carefully; a wrong calculation and you’ll be owing the IRS more money. No one wants to be on the wrong side of the IRS by filing taxes wrongly, but everyone wants to do the tasks as quickly as possible. A tax calculator is one of the most convenient ways to calculate your taxes.
These days, there are a lot of tax tools that can help you fill in the correct taxes and ensure you save money too. If all your taxes are relatively simple, using tax calculator tools isn’t a bad idea; they help you sort out your taxes at your convenience. They can also help you calculate your credits, check your investments, stocks, and dentures, and allow you to file the correct tax returns.
Top Tax Calculator Tools
If you are a business owner or investor looking for tools to make your tax filing easier, an online tax calculator tool might just be the answer. Here are the top tax calculators you can use.
TaxAct Online Tax Software
If filing your income taxes keeps you too busy to focus on your business, you should consider using TaxAct Online Tax Software. It covers all the basics, lets you estimate federal and state income, and includes a What-If that gives you an overview of how different scenarios could impact your tax burden. The tax software is very affordable and helps you keep track of every deduction you’re eligible for on your income tax return.
TaxAct can also be used to calculate capital gains taxes on stock investments and import your stock transactions from your brokerage account to help you determine your tax liability.
H&R Block
If you own a small business, H&R Block TaxCut Software is worth the price. It is an easy at-home tax prep and filing tool that helps you do your taxes at your pace. It offers live chat support ducting tax season so that you can get answers to your tax questions. It also allows you to add specific numbers to see how much can be withheld from your paycheck before you start filing. This helps you plan ahead for any additional withholding. You can also access more helpful tools like SmartLookTM that allow you to receive an accurate guide from an expert that will walk you through the process of completing your tax return.
H&R Block also includes a tax calculator tool for capital gains taxes on investments. It also imports your brokerage account to determine how much tax you have to pay.
QuickBooks
If you’re a business owner that wants to save more tax money, especially when you’re just starting, then QuickBooks is for you. The income tax calculator tool helps you track your expenses, produce organized reports with other online tools, and calculates your taxes, making it easy to file your taxes. Its app on apple watch allows you to track tour expenses anywhere without having to check your phone, and you can sync it with other accounting software like Xero or Freshbooks to track your cash flow better.
SmartAsset
This tax calculator tool will help you calculate what your income taxes will be with ease. All you have to do is enter your household income, filing status, and location. The calculator also provides information on the effective tax rate and marginal tax rate for each tax type. The calculator also shows you how much your federal tax income has changed each year.
You can also use Smart Assets to pay capital gains taxes you owe if you sold real estate, stocks, or other investments.
TurboTax
TurboTax offers a tax calculator called TaxCaster. It’s a tool that helps you calculate your tax and predict how much money you could get back as a refund. With TaxCaster, you get step-by-step guidance and import tax information from previous years. It offers a user-friendly Android and iOS app that saves your information so you can get results instantly when you make changes.
It is also a popular tool for calculating your capital gains taxes, as it automatically imports your stock transaction from your brokerage account and helps you calculate your tax liability.
Are Online Tax Calculators Reliable?
While tax calculator tools can be accurate, it’s also essential to understand that accuracy depends on the information you provide, such as your income, credit, and deduction. These tools estimate your tax liabilities with algorithms based on the information you input. To ensure the accuracy of a tax calculator tool, you must ensure that you provide correct and complete information.
You should also know that tax laws change from year to year, which can affect your tax tools’ accuracy. Although most tax calculator tools are updated to reflect tax changes yearly, it’s also good to check and confirm any update that could affect your tax liability.
Tax calculator tools are excellent for simple taxes. But, if you have complex tax situations, such as real estate and investments, or need to reduce your tax liability with proactive tax strategies, you should consult a tax strategist like Tax Goddess to help you take tax advantage of your write-offs, credits, and deductions.
