Chapter 2: Understanding Your Income
Not every dollar you earn will be yours to keep. You will owe the IRS a portion of every dollar you earn. The amount you owe will be dependent on a few factors, the amount of income you made, and the deductions you can take. A useful tool for calculating your income tax is Smartasset Federal Income Tax Calculator. Simply plug in your anticipated income, state, and filing status and it will break down how much you owe in taxes. Calculating your deductions is also simple, when you file taxes using Turbotax or a similar service there will be step by step instructions on what you can deduct. All your planning is for nothing if you don't know how much you bring home after taxes and withholding.