Filing taxes can be confusing and even scary, and that is why you should use a tax calculator. It will make filing your income tax return so much easier, especially if you’re a beginner at taxes.
About Income Tax
An income tax is a tax on income generated by individuals and businesses. Taxpayers must file an income tax return every year so that they know how much tax they should pay.
Basically, you have money, and the government is asking some of it for the country. Your tax will go into funding public services for the citizens and paying government obligations. However, it is filing taxes that is confusing.
Reasons Why You Should Use a Tax Calculator
This calculator will help you in filing your income tax return. Here are some benefits that you will get from using this service.
- Less Confusion
Filing an income tax return can be confusing, not only for first-timers but for everyone. There are so many details and questions. This is why the income tax return calculator is here to help you.
The calculator has both a simple and an advanced version to accommodate any possible situation and get an accurate estimation of your income tax. Simply select your filing status and fill in the form accordingly and as accurately as possible. The system will calculate for you.
- Avoid Late Filing
If you file your return late, you will get a penalty. Even if you cannot pay all your taxes, you should still file a return on time. This is because the penalty for failing to file is usually higher than for failing to pay taxes.
The penalty for filing your return late is about 5 percent of your unpaid taxes per month. On the other hand, the penalty for paying your taxes late is half of 1 percent of your unpaid taxes.
If you cannot pay your taxes on time there are options such as loans or arranging for an installment agreement. So, always make sure you file your return before the due date. To make filing easier, you can use the tax calculator.