Unreal asked:


What is the formula the IRS uses to calculate how much I owe them at the end of each year? I know how to calculate how much I AM paying based on exemptions etc…but how to calculate what the IRS says I should be paying? If I know the two amounts, I will have a rough estimate or refund / amount owed. I file a very simple 1040, no mortage, dividends, etc. The only extra adjustment I claim is the interest on my student loans.

Dora

2 Responses to “How do I calcuclate end of year Fed Inc Tax amount?”

1. bklyn_40 on June 25th, 2009 8:31 pm

   Stacey

   If you get the 1040 booklet, it explains it all right in there. Or you can go to the IRS website (www.irs.gov).
   How about looking at your past returns & see what has changed so far this year? I think that’ll be the easiest

2. Judy on June 26th, 2009 9:13 am

   Mario

   You fill out a tax return on a 1040, 1040A or 1040EZ form to calculate your taxable income, then refer to a tax table or schedule to calculate your tax liability. Comparing that to the amount already paid in gives you what you owe additional, or what will be refunded to you.

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