❓ Frequently Asked Questions

Common questions about US taxes and our calculator

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How accurate is this tax calculator?

Our calculator uses the official 2025 IRS tax brackets and standard deductions. It provides accurate estimates for most taxpayers but doesn't include all possible tax credits, AMT, or complex tax situations. For precise calculations, consult a tax professional.

Are state taxes included?

Yes! We include state income taxes for all 50 states plus DC. You can use the default rates we provide or customize them. We also support NYC local tax for New York residents.

What pre-tax deductions are supported?

We support 401(k)/403(b) contributions, health insurance premiums, HSA/FSA contributions, and other common pre-tax deductions. These reduce your taxable income before taxes are calculated.

Can I use this for different pay frequencies?

Absolutely! Enter your salary as annual, monthly, bi-weekly, or weekly. The calculator automatically converts everything to annual amounts for accurate tax calculations.

What's the difference between standard and itemized deductions?

Standard deduction is a fixed amount ($15,000 single, $30,000 MFJ, $22,500 HoH for 2025). Itemized deductions include things like mortgage interest, state taxes, and charitable contributions. Use whichever is higher.

Is my information stored or tracked?

No personal information is stored on our servers. All calculations happen in your browser. We don't track, store, or share your financial data.

What are FICA taxes?

FICA includes Social Security (6.2% up to $176,100 wage base) and Medicare (1.45% on all income, plus 0.9% additional Medicare tax on high earners). These fund Social Security and Medicare programs.

How do tax brackets work?

The US uses a progressive tax system. You pay 10% on the first portion of income, 12% on the next portion, and so on. You never pay your highest tax rate on all your income - only on the amount in that bracket.

What's not included in this calculator?

This calculator doesn't include tax credits (Child Tax Credit, EITC, etc.), Alternative Minimum Tax (AMT), capital gains, dividend taxes, or complex deduction phase-outs. It's designed for W-2 wage earners.

When should I use a tax professional?

Consider a tax professional if you have: multiple income sources, rental properties, business income, significant investment income, complex deductions, or if you owe substantial taxes. This calculator is great for planning and estimates.

Are the 2025 tax numbers final?

Yes, we use the official 2025 tax brackets, standard deductions, and contribution limits as published by the IRS. These are adjusted annually for inflation and finalized in late 2024.

Can I save or share my calculation?

Currently, calculations are session-based only. You can bookmark the page with your inputs in the URL, or take a screenshot of your results for reference.

How do I know if I should itemize or take the standard deduction?

Compare your potential itemized deductions (mortgage interest, state/local taxes up to $10k, charitable contributions, medical expenses over 7.5% of AGI) to the standard deduction ($15,000/$30,000/$22,500). Take whichever is higher.

What's the difference between gross pay, net pay, and take-home pay?

Gross pay is your total earnings before any deductions. Net pay (take-home pay) is what you receive after all taxes and deductions. Our calculator shows both federal and total effective tax rates.

Can married couples file separately to save taxes?

Sometimes, but usually married filing jointly results in lower taxes. Consider filing separately if: one spouse has high medical expenses, significant miscellaneous deductions, or you want to keep finances separate. Always compare both options.

How does the Additional Medicare Tax work?

If your wages exceed $200,000 (single) or $250,000 (married filing jointly), you pay an additional 0.9% Medicare tax on the excess amount. This is automatically calculated in our tool when you enter higher income amounts.

What pre-tax benefits should I maximize first?

Priority order: 1) 401(k) up to employer match, 2) HSA maximum if available, 3) Additional 401(k) up to limit, 4) Traditional IRA if eligible. Each dollar of pre-tax contribution saves your marginal tax rate in current taxes.

Do I need to pay estimated taxes?

You may need quarterly estimated taxes if: you're self-employed, have significant investment income, or won't have enough tax withheld. Required if you'll owe $1,000+ and haven't paid 90% of current year tax or 100% of last year's tax.

How accurate are payroll tax calculations for irregular pay?

Our calculator assumes steady pay throughout the year. For irregular income (bonuses, commissions), actual withholding may differ because payroll systems often annualize the single paycheck amount, potentially over-withholding on large payments.

What's not included that might affect my actual taxes?

Our calculator doesn't include: tax credits (Child Tax Credit, EITC), Alternative Minimum Tax (AMT), capital gains, dividend taxes, state-specific credits, or complex deduction phase-outs. It's designed for standard W-2 wage earners.

How do state tax reciprocity agreements work?

Some states have agreements where you pay tax to your home state instead of work state. For example, if you live in Pennsylvania and work in New Jersey, you may pay PA tax instead of NJ tax. Check with both states' tax departments for specific rules.

Should I contribute to Traditional or Roth 401(k)?

Choose Traditional if you're in a high tax bracket now and expect lower taxes in retirement. Choose Roth if you're in a low bracket now or expect higher taxes later. Many experts recommend a mix of both for tax diversification.

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Disclaimer: The information provided here is for educational purposes only and should not be considered professional tax advice. Tax laws are complex and individual situations vary. Always consult with a qualified tax professional for advice specific to your circumstances.