Chances are that if you're employed within the United States, every month you will receive a brand new paycheck for the work you have carried out. Most of the time, it's baffling to see just how much money has been deducted from those checks, leaving you wishing that a larger number would go towards you, rather than tax. The truth is that the percentage of your wage that is removed from your paycheck each month is taken to pay for various taxes, and these are the same taxes that everyone in the country is expected to pay. Obviously, the amount of tax you'll need to pay will vary depending on your income and where you live and work, but learning how to use a state income tax calculator can give you a better idea of what you're paying when it comes to income tax.

Filing Your Income Tax

Most people forget about state income tax calculator options and other tools until the middle of April when tax season is already in full swing. This is no surprise, as most people prefer to avoid thinking about money troubles for as long as possible, particularly since tax season can be the most difficult and stressful time of the year. The official filing date for business and personal income taxes is April 15th, and the tax system in the United States has become somewhat overwhelming over the years, meaning that many people don't know every rule and definition they're expected to keep up with. Learning the basics of using a state income tax calculator can help when paying the IRS finally comes around.

Calculating Income Tax

Most people recommend that it's a good idea to get professional advice when you're filing your taxes, but if you need to save money by doing it yourself, there are a few steps for getting started. Initially, you need to begin by calculating your gross income, otherwise known as the amount of money you make before any expenses have been taken out. Then, you will need to subtract your expenses. Remember that the expenses should only be those that have been approved as deductible by the IRS. The IRS website, or a tax professional should help you to determine which expenses are valid and legal based on the available US tax code.

After that, you'll need to take away any deductions. A lot of people filing their tax find that they can subtract money that they have spent on various expenses, such as dental expenses, mortgage interest, and donations that must be made to charity. At the end of this, you will be left with your taxable income, and you should find the exact percentage that you are required to pay by locating the tax bracket you fall under.

Remember that once you have used a state income tax calculator to determine exactly how much you will have to pay, you need to make any payments for your taxes by the deadline provided (usually in the middle of April), otherwise you will risk paying interests and fines.