This spreadsheet should be able to help you effortlessly calculate your federal tax return for 2016. I still advise using free e-filing services, but this sheet should at least allow you to know what to expect/confirm the results of any online e-file service that you use. I've added worksheets for Single, Married filing Jointly, and Head of Household, so almost everyone is covered! (Sorry my Married filing Separate peeps!)
I've linked it here: 2016 Federal Tax Calculator
You can see a sample calculation of a single person earning $70k gross wages with a $2500 student loan interest adjustment taking the standard deduction and personal exemption here: Single Blank - Sample Case (Single)
All of the light blue areas in the sheet can be edited:
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Can you be claimed as a dependent? (Y or N) : - Chose "N" if no one can claim you on their taxes. Chose "Y" otherwise. If someone is able to claim you on their taxes, you do not qualify for the Personal Exemption. [Sample Case: N]
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Income and Wages (W-2 Box 1): - Input the total amount of wages from your W-2(s) and any other income. [Sample Case: $70k]
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Adjustments: - Input the total of your "above the line" deductions, e.g. Student Loan Interest (1098-E), etc. [Sample Case: $2500]
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Itemized Deductions: - If you're going to itemize deductions, you can place the total here. Please be aware that if you itemize, the Standard Deduction will become zero. [Sample Case: $0]
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Other Exemptions (Dependents): - Take the number of dependents you have, and multiply it by 4050, e.g., if you have 2 dependents, this number will be 2 x 4050=8100. If you have no dependents, please leave this at 0. [Sample Case: $0]
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Exclusions: - Enter the total amount of any income exclusions here. For example, the Foreign Earned Income Exclusion would be up to $101,300 for 2016. [Sample Case: $0]
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Tax Credits: - Enter the total amount of any non-refundable tax credits here, such as the Saver's Credit. [Sample Case: $0]
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Tax Paid (W-2 Box 2): - Enter the total amount of income withheld by your employer on your W-2(s) and/or any monies paid directly to the IRS. [Sample Case: $10,984]
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Tax Credits (Refundable): - Enter the total amount of any refundable tax credits, such as the Earned Income Credit, here. [Sample Case: $0]
Once the sheet has all the needed information, it will automatically calculate your expected refund, or, in which case you underpaid, what you owe the IRS. I have not done extensive testing on this, so the refund number might be off, but it should be in the ballpark.
Another nice feature is that you're able to see which portions of your income are being taxed in each tax bracket, and you're able to easily see what tax bracket you fall into. Our sample case falls into the 25% bracket.
I'm hoping this sheet will help somewhat demystify how our taxes are done. I also recommend reading the IRS instructions for the 1040 form. They are surprising detailed.
I welcome any feedback on this project. Thanks for letting me share!
Submitted January 21, 2017 at 07:26PM by deeperkyo http://ift.tt/2jCKb1H
