Things You Should Know About IRS Tax Tables

Thursday, July 2nd, 2009 at 04:47

by Anne Durrell

If you’re trying to find an easy way to calculate exactly how much tax you should have paid throughout the financial year, the IRS Tax Tables can be your first step.

The IRS Tax Tables outline precisely how much you should have paid in taxes for each increment of income up to $100,000. You simply look for the annual income figure that matches your earnings and you’re given the exact amount of tax you’re expected to pay for that figure.

Often using the simple IRS Tax Tables can be a much easier way to determine the correct amounts without having to bother about trying to calculate the percentages for each individual tax bracket. The figures shown within the tables have had all the messy tax bracket calculations already figured out for you.

For business owners trying to calculate how much tax to withhold from employees earnings, the IRS Tax Tables can tell you at a glance how much you need to deduct. This can be especially helpful if you have staff earning an hourly rate and working different amounts of hours each week.

One advantage of using your own copy of the IRS tax tables throughout the years is that you can control and monitor the amount of tax you pay. If you receive a salary increase during the year, you will find it useful to check if your employer is paying enough taxes to ensure that you receive a refund.

On the other end of the scale, you may find that you did not spend some time working, either by illness or unemployment, so that you can use the tax tables from the IRS to show you how much tax you’ve overpaid through the year and then calculate whether you are due a refund or not.

If at some point you recognize on your IRS Tax Tables that you haven’t been paying enough tax through the year, you have the opportunity to increase the amount of tax you pay to avoid receiving a bill at tax time. You could also decide to try and find a few extra tax deductions before it’s time to file your taxes to help increase the amount of tax refund you receive.

There are several websites on the Internet offering downloads of the IRS tax tables so you can save on your computer for easy access or you can get directly from the Internal Revenue Service offices.

About the Author:

Anne Durrel comes from Stockton, California. She has written a number of articles on IRS . Please also check out her other guide on irs publications tips, and irs tax tables guide!

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