Thursday, 25 August 2011

Where to Find Free Tax Calculators

Where Can You Find the Best Calculator for Your Taxes?

Free tax calculators are abundant on the internet and every tax preparation site is offering them. They are to entice the taxpayer to do their taxes with them.

Whenever the word "Free" is used the taxpayer should stop and ask their self if anything is truly free? Question the motives of the site and whether the free giveaway will in the end cost them more money. There are many free tax calculators from the IRS website to the many other top websites. The top three contenders for tax preparation are TurboTax, H&R Block and TaxAct.


Different Types of Tax Calculators

There are many different types of free calculators. The main websites will do the basic calculations, but again remember these are estimated refunds. The majority of people will not get the same refund as advertised on the site using the calculator.
  • Refund Calculator - The refund calculator show the taxpayer an estimated refund to be expected.
  • Earned Income Calculator - The EIC calculator allows the taxpayer to see if they qualify for the earned income credit.
  • IRA Calculator - The IRA calculator estimates tax savings from an IRA.
  • Life changing events calculator - This calculator allows the taxpayer to see if some adjustments need to be done in case of death, new job or marriage.
  • Withholding calculator - The withholding calculator lets the taxpayer know if the withholding is correct or needs to be adjusted.
  • Paycheck calculator - The paycheck calculator is to make sure that your paycheck and the withholding are correct.


Where to Get a Free Tax Calculator

1040. com - One of the most primitive and useful calculators is with 1040.com. It asks a few basic questions and gives the exact right answer. Of course its ultimate goal is to get the taxpayer to file with them, but a definite must see website.

TurboTax - TurboTax offers a modern day calculating system that is top of the line. They offer three free online tax calculators. One is for estimated income and refund, one is for the IRA and the other one is for life events changer. They offer tips and other information on their website. They offer a special offer of "Try before you buy" marketing tool.

H & R Block - One of the best calculators is located on the H & R. Block page. It is automated and very simple. It works better than the TurboTax calculator, but it is slower. The page is full of information and it is definitely a must read page.

Tax calculators are very simple in use; they are only a basis for an estimated refund to entice the taxpayer to come to their site. It is a good precursor to how good things will run for the preparation stage. Depending on the type of tax refund that must be filed, rates vary.


Perez, William "Top 5 Tax Calculators" About.com

Photo courtesy of Photobucket/ rickInterlocken