1040 Tax Estimator

Enter your filing status, income, deductions and credits and we will estimate your total taxes for 2004. Based on your projected withholdings for the year, we can also estimate your tax refund or amount you may owe the IRS next April. This calculator uses the preliminary 2004 tax tables, subject to modifications by the IRS and changes in the tax code.

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1040 Tax Calculator

Your taxes are estimated at LINE_56_TOTAL_TAX.

This is AVERAGE_TAX_RATE of your total income of LINE_22_TOTAL_INCOME. Your total tax payments for the year were LINE_64_TOTAL_PAYMENTS. REFUND_OR_OVERPAYMENT_TEXT is estimated at REFUND_OR_OVERPAYMENT_AMT. Your income puts you in the BRACKET_TAX_RATE tax bracket. This calculator uses the preliminary 2004 tax tables, subject to modifications by the IRS and changes in the tax code.

REFUND_OR_OVERPAYMENT_TEXT REFUND_OR_OVERPAYMENT_AMT

Filing status

LINE_1_FILING_STATUS

Total exemptions claimed: LINE_6D_TOTAL_EXEMPTIONS_CLAIMED

Personal exemption	LINE_6A_PERSONAL_EXEMPTION
Spouse exemption	LINE_6B_SPOUSE_EXEMPTION
Dependents	LINE_6C_DEPENDANTS

Wages, salaries, tips, etc

LINE_7_WAGES_SALARIES_TIPS_ETC

Taxable interest

LINE_8A_TAXABLE_INTEREST

Tax-exempt interest

LINE_8B_TAXEXEMPT_INTEREST

Ordinary dividends

LINE_9_ORDINARY_DIVIDENDS

Corporate dividends

LINE_9_OTHER_DIVIDENDS

Taxable refunds or credits of state and local income taxes

LINE_10_TAXABLE_REFUNDS_OR_CREDITS_OF_STATE_AND_LOCAL_INCOME_TAXES

Alimony received

LINE_11_ALIMONY_RECEIVED

Business income or loss

LINE_12_BUSINESS_INCOME_OR_LOSS

Short term capital gain or loss*

LINE_13_SHORT_TERM_CAP_GAIN

Long term capital gain or loss*

LINE_13_LONG_TERM_CAP_GAIN

Other gains or losses

LINE_14_OTHER_GAINS_OR_LOSSES

Taxable IRA distributions

LINE_15_TAXABLE_IRA_DISTRIBUTIONS

Taxable pensions and annuity distributions

LINE_16_TAXABLE_PENSIONS_AND_ANNUITY_DISTRIBUTIONS

Income from Schedule E

LINE_17_INCOME_FROM_SCHEDULE_E

Farm income or loss

LINE_18_FARM_INCOME_OR_LOSS

Unemployment compensation

LINE_19_UNEMPLOYMENT_COMPENSATION

Taxable social security benefits

LINE_20_TAXABLE_SOCIAL_SECURITY_BENEFITS

Other income

LINE_21_OTHER_INCOME

Total income

LINE_22_TOTAL_INCOME

Educator expenses

NEW_23_EDUCATION_EXPENSES

IRA deduction

LINE_23_IRA_DEDUCTION

Student loan interest deduction

LINE_24_STUDENT_LOAN_INTEREST_DEDUCTION

Tuition and fees deduction

NEW_26_TUITION_AND_FEES

Moving expenses

LINE_26_MOVING_EXPENSES

One-half of self-employment tax

LINE_27_ONEHALF_OF_SELFEMPLOYMENT_TAX

Self-employed health insurance deduction

LINE_28_SELFEMPLOYED_HEALTH_INSURANCE_DEDUCTION

Archer Medical Savings Account (MSA) deduction

LINE_25_MEDICAL_SAVINGS_ACCOUNT_DEDUCTION

Self-employed SEP, SIMPLE and qualified plans

LINE_29_KEOP_AND_SELF_EMPLOYED_SEP_AND_SIMPLE_PLANS

Penalty on early withdrawal of savings

LINE_30_PENALTY_ON_EARLY_WITHDRAWAL_OF_SAVINGS

Alimony paid

LINE_31_ALIMONY_PAID

Total adjustments

LINE_32_TOTAL_ADJUSTMENTS_23_THROUGH_31

Adjusted gross income (AGI)

LINE_33_ADJUSTED_GROSS_INCOME

Total credits: LINE_35A_TOTAL_CREDITS

65 or older?	LINE_35A_YOU_WERE_65_OR_OLDER
Blind?	LINE_35A_BLIND
Spouse 65?	LINE_35A_SPOUSE_WAS_65_OR_OLDER
Spouse blind?	LINE_35A_BLIND_SPOUSE

Married filing separately

LINE_35B_MARRIED_FILING_SEPARATELY

Itemized deductions

LINE_36_ITEMIZED_DEDUCTIONS

Can someone claim you as a dependent?

LINE_36_CAN_SOMEONE_CLAIM_YOU_AS_A_DEPENDENT

Standard deduction

LINE_36_STANDARD_DEDUCTION

Deduction to use

LINE_36_DEDUCTION_TO_USE

Deduction for exemptions

LINE_38_DEDUCTION_FOR_EXEMPTIONS

Taxable income

LINE_39_TAXABLE_INCOME

Tax*

LINE_40_TAX

Alternative Minimum Tax (AMT)

LINE_51_ALTERNATIVE_MINIMUM_TAX

Total with AMT

LINE_42_TOTAL

Foreign tax credit

LINE_46_FOREIGN_TAX_CREDIT

Child and dependent care credit

LINE_41_CREDIT_FOR_CHILD_AND_DEPENDENT_CARE_EXPENSES

Credit for the elderly or disabled

LINE_42_CREDIT_FOR_THE_ELDERLY_OR_DISABLED

Education credits

LINE_44_EDUCATION_CREDITS

Retirement savings contributions credit

NEW_48_RETIREMENT_SAVINGS_CREDIT

Child tax credit

LINE_43_CHILD_TAX_CREDIT
Based on LINE_6C_DEPENDANTS_QUALIFYING_FOR_CHILD_TAX_CREDIT qualifying dependents.

Child tax credit received previously

LINE_RECVD_CHILD_CREDIT

Adoption credit

LINE_45_ADOPTION_CREDIT

Other credits

LINE_47_OTHER_CREDITS

Total credits

LINE_48_TOTAL_CREDITS

Total tax after credits

LINE_49_TOTAL_TAX_AFTER_CREDITS

Self-employment tax

LINE_50_SELFEMPLOYMENT_TAX

Social security and Medicare on tips not reported

LINE_52_SOCIAL_SECURITY_AND_MEDICARE_ON_TIPS_NOT_REPORTED

Tax on IRAs and other retirement plans

LINE_53_TAX_ON_IRAS_AND_OTHER_RETIREMENT_PLANS

Advance earned income credit payments

LINE_54_ADVANCE_EARNED_INCOME_CREDIT_PAYMENTS

Household employment taxes

LINE_55_HOUSEHOLD_EMPLOYMENT_TAXES

Total other taxes

TOTAL_OTHER_TAXES

Total tax

LINE_56_TOTAL_TAX

Federal income tax withheld

LINE_57_FEDERAL_INCOME_TAX_WITHHELD

2004 estimated tax payments

LINE_58_2000_ESTIMATED_TAX_PAYMENTS

Earned income credit

LINE_59_EARNED_INCOME_CREDIT

Excess social security and RRTA tax withheld

LINE_62_EXCESS_SOCIAL_SECURITY_AND_RRTA_TAX_WITHHELD

Additional child tax credit

LINE_60_ADDITIONAL_CHILD_TAX_CREDIT_

Amount paid with request for extension

LINE_61_AMOUNT_PAID_WITH_FORM_4868

Other payments

LINE_63_OTHER_PAYMENTS

Total payments

LINE_64_TOTAL_PAYMENTS

*Any amount you enter as a short-term capital gain is taxed as normal income. Any amount you enter as a long-term capital gain or dividend is taxed as follows:

This calculator assumes that all of your long-term capital gains and dividends are taxed at either 5% or 15%.
The tax is 5% for the portion of your gain that would have been taxed at 15% or lower tax if it were a short-term gain.

The tax is 15% for any of your capital gain that would have been taxed at a rate higher than 15% if it were considered a short term gain.

This calculator assumes that none of your long-term capital gains come from collectibles, section 1202 gains or unrecaptured 1250 gains. These types of capital gains are taxed at 28%, 28% and 25% respectively (unless your ordinary income tax bracket is a lower rate).

For more information on capital gains tax rates and how they are applied, you may wish to read IRS Publication 17: Your Federal Income Taxes.

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Definitions

Jobs and Growth Tax Relief Reconciliation Act

The tax bill passed in 2003 included some significant, often temporary, and somewhat confusing changes. This is in addition to the already complex tax code changes passed by Congress in 2000. Below is a summary of the changes that impact most taxpayers in 2004.

Child tax credit: The child tax credit has been increased from $600 to $1,000 for 2003 and 2004. Starting in 2005, the tax credit returns to the level originally passed in the 2000 tax bill. The credit is, however, still phased out for higher incomes.
Marriage penalty relief: The new law changes 2003 and 2004's standard deduction for married couples filing jointly and qualified widowers to be double that of single tax filers. This puts the standard deduction for 2004 at $9700. After 2004, the standard deduction will revert back to the law passed in 2000.
In addition to the increased standard deduction, the 15% tax bracket has been increased for married tax filers to further reduce the impact of the marriage penalty. Like the standard deduction change, this change is only for 2003 and 2004.
The 10% tax bracket: In 2004, single taxpayers will pay 10% of income up to $7,150, increased from $6,000 under the old law. Likewise, married couples filing jointly will have an increase from $12,000 to $14,300. These amounts will revert back to the old law's rules in 2005.

Lower tax rates: The new law accelerates rate reductions for all brackets above 15%:

Filing Status and Income Tax Rates 2004

Tax rate Married filing jointly
or Qualified Widow(er) Single Head of household Married filing separately

10% $0 - 14,300 $0 - 7,150 $0 - $10,200 $0 - 7,150

15% $14,301- 58,100 $7,151- 29,050 $10,201- 38,900 $7,151- 29,050

25% $58,101- 117,250 $29,051- 70,350 $38,901- 100,500 $29,051- 58,625

28% $117,251- 178,650 $70,351- 146,750 $100,501- 162,700 $58,626- 89,325

33% $178,651- 319,100 $146,751- 319,100 $162,701- 319,100 $89,326- 159,550

35% over $319,100 over $319,100 over $319,100 over $159,550

Reduced Taxes on Capital Gains: The capital gains tax rates of 15% and 20% have been reduced to 5% and 15% respectively. These capital gains rates are for property that was held for at least one year. This calculator assumes that all of your long-term capital gains are taxed the new rates of 5% and 15%.
Reduced Taxes on Dividends: The new law applies the capital gains tax rates to qualified dividends paid from most U.S. corporations and certain qualified foreign corporations. This calculator assumes that all dividends are qualified, however, you should make certain that this is the case in your particular circumstance. All qualified dividends will appear in column 1b of Form 1099-DIV, which should be sent to you in January of the year following the dividend payment. Taxpayers in the 10% or 15% bracket pay a 5% rate of tax on dividends paid between January 1, 2003, and December 31, 2007, and zero percent in 2008. Taxpayers in tax brackets above 15%, pay a 15% rate of tax on dividends paid between January 1, 2003, and December 31, 2008.
Alternative Minimum Tax (AMT): The new tax law increases the AMT exemption for married filers to $58,000 for 2004. it has also increased the AMT exemption to $40,250 for single filers for 2004. Please note that calculating the impact of AMT on your taxes is beyond the scope of this calculator. Please see your tax professional for assistance if you believe that you will be required to pay the AMT.
IRA and retirement plan deductions: The new tax law did not change IRA deduction and contribution limits. However, the 2000 tax code increased the amount for most individuals to $3,000. Those over 50 can contribute $3500.

Dependents

A dependent is someone you support and for whom you can claim a dependency exemption. In 2004 each dependent you claim entitles you to receive a $3,100 reduction in your taxable income (see exemptions below). In 2004, each dependent under the age of 17 also receives a tax credit of $1000. The credit is, however, phased out for at higher incomes.

Total exemptions claimed

Each exemption you claim reduces your taxable income by $3,100 for 2004. You receive an exemption for yourself, your spouse and one for each of your dependents.

Capital Gain or Loss

This is the total capital gain you realized from the sale of assets. This calculator allows you to enter your total short-term capital gain for investments held less than one year and your total long-term gain for investments held at least one year. Any amount you enter as a short-term capital gain is taxed as normal income. Any amount you enter as a long-term capital gain is taxed as follows:

This calculator assumes that all of your long-term capital gains are taxed at either 5% or 15%.
The tax is 5% for the portion of your gain that would have been taxed at 15% or lower tax if it were a short-term gain.
The tax is 15% for any of your capital gain that would have been taxed at a rate higher than 15% if it were considered a short-term gain.
This calculator assumes that none of your long-term capital gains come from collectibles, section 1202 gains or unrecaptured 1250 gains. These types of capital gains are taxed at 28%, 28% and 25% respectively (unless your ordinary income tax bracket is a lower rate).

For more information on capital gains tax rates and how they are applied, you may wish to read IRS Publication 17: Your Federal Income Taxes.

Income from Schedule E

Rental real estate, royalties, partnerships, S Corporations, trusts, etc.

Total income

Total income calculated by adding lines 7 through 21 on your form 1040. For most taxpayers this includes wages, salaries, tips, interest, dividends and gains and losses from a variety of activities.

Adjusted gross income

Adjusted gross income (AGI) is calculated by subtracting all deductions from lines 23 through 33 from your total income. AGI is used to calculate many of the qualifying amounts if you itemized your deductions.

Taxable income

Your total taxable income is your AGI minus your itemized or standard deduction, and your deduction for exemptions.

Tax

This is the total federal income tax you owe for 2004 before any tax credits.

Total credits

Your total tax credits. This amount is subtracted from the total tax amount.

Total tax after credits

This is the total federal income tax you will need to pay in 2004.

Total other taxes

Any other taxes that you owe for 2004. This includes self-employment tax, alternative minimum tax, and household employment taxes.

Total tax

Grand total of your 2004 Federal tax bill.

Total payments

Total of all tax payments made in 2004. This includes tax withheld from Forms W-2 and 1099, and estimated taxes paid, earned income credit and excess social security tax withheld.