How to Calculate Income Tax Owed the Easy Way
Every tax day, millions of people face millions of headaches over calculating something that should be fairly simple: how much does each of us need to pay to keep the government running smoothly? Unfortunately, it’s a real pain to calculate income tax owed: you don’t just need to know how much you make and how much you owe based on that – you also have to do your best to take advantage of all the special credits and deductions you can get for everything from having a kid to buying a sloar netfile panel. And even that doesn’t cover how tough it is to calculate income tax owed if you’re filing late.
You could work with an established tax preparer. There’s no reason to think that they wouldn’t be able to calculate your income tax owed, and give you some tips on how to get the most out of your deductions. But owning an office and hitting up new customers is pretty expensive, and you’ll end up paying for some of it. Traditional tax preparers can charge high hourly rates, which might eat away at any deductions you could get from them.
You could also have a big tax prep chain calculate your income tax owed. If you do, though, you never know who you’re working with – unlike a smaller company, you won’t get personalized treatment. And since the big companies are more worried about getting sued or damaging their reputations, they tend to be very cautious: if there’s a deduction that you might deserve, but might not, they may not bother to do the research for you.
Instead, you can work with a small site focused on rapid tax preparation. They’ll be able to calculate income tax owed automatically, and help you figure out which deductions to take and which won’t work. If you get stuck, you can use a chat system on the site to move forward. Using a small business website that helps will get you the answers you want without taking up too much of your time.
Nobody wants to spend too much time on their income taxes, but nobody wants to miss any extra deductions they might deserve. The best compromise is to go online: you can get your return done fast, calculate income tax owed, and pay up without much hassle. Whether you have a simple return, a complex set of deductions and multiple streams of income, or even a late filing, online tax preparation is the way to go.