AARP Home » Money » Taxes »1040 Tax Calculator

1040 Tax Calculator

Enter your filing status, income, deductions and credits and we will estimate your total taxes for 2011. Based on your projected withholdings for the year, we can also estimate your tax refund or amount you may owe the IRS next April 2012. In 2011, Federal income tax rates were scheduled to increase to pre-2001 levels, but the "Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010" left the existing tax brackets in place through 2012.

This Financial Calculator requires SUN's Java™ Plug-in. If you see this message you will need to download SUN's Java™ Plug-in. This can be done automatically by clicking the yellow bar at the top of your browser and choosing “Install ActiveX Control”.

Get the Java™ Plug-in!

For more information about this Plug-in please visit: SUN's Java™ Plug-in
For more information about these tax calculators please visit: Tax Calculators from KJE Computer Solutions, LLC

Definitions

2011 Tax rates:

In 2011, Federal income tax rates were scheduled to increase to pre-2001 levels, but the "Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010" left the existing tax brackets in place through 2012. The income ranges were increased modestly for inflation, but otherwise remained the same as 2010. Below are the resulting tax rates and income ranges for 2011:

Filing Status and Income Tax Rates 2011 Caution: Do not use these tax rate schedules to figure 2010 taxes. Use only to figure 2011 estimates.
Tax rate	Married filing jointly or qualified widow(er)	Single	Head of household	Married filing separately
10%	$0 - 17,000	$0 - 8,500	$0 - $12,150	$0 - 8,500
15%	$17,000 - 69,000	$8,500 - 34,500	$12,150 - 46,250	$8,500 - 34,500
25%	$69,000 - 139,350	$34,500 - 83,600	$46,250 - 119,400	$34,500 - 69,675
28%	$139,350 - 212,300	$83,600 - 174,400	$119,400 - 193,350	$69,675 - 106,150
33%	$212,300 - 379,150	$174,400 - 379,150	$193,350 - 379,150	$106,150 - 189,575
35%	over $379,150	over $379,150	over $379,150	over $189,575

Source: http://www.irs.gov

Filing status

Choose your filing status. Your filing status determines the income levels for your federal tax bracket. It is also important for calculating your standard deduction, personal exemptions, and deduction phase out incomes. The table below summarizes the five possible filing status choices. It is important to understand that your marital status as of the last day of the year determines your filing status.

Filing Status for 2011
Married filing jointly	If you are married, you are able to file a joint return with your spouse. If your spouse died during the tax year, you are still able to file a joint return for that year. You may also choose to file separately under the status "Married filing separately".
Qualified widow(er)	Generally, you qualify for this status if your spouse died during the previous tax year (not the current tax year) and you and your spouse filed a joint tax return in the year immediately prior to their death. You are also required to have at least one dependent child or stepchild for whom you are the primary provider.
Single	If you are divorced, legally separated or unmarried as of the last day of the year you should use this status.
Head of household	This is the status for unmarried individuals that pay for more than half of the cost to keep up a home. This home needs to be the main home for the income tax filer and at least one qualifying relative. You can also choose this status if you are married, but didn't live with your spouse at anytime during the last six months of the year. You also need to provide more than half of the cost to keep up your home and have at least one dependent child living with you.
Married filing separately	If you are married, you have the choice to file separate returns. The filing status for this option is "married filing separately".

Dependents

A dependent is someone you support and for whom you can claim a dependency exemption. In 2011, each dependent you claim entitles you to receive a $3,700 reduction in your taxable income (see exemptions below). You may also receive a tax credit of up to $1,000 for each dependent child under the age of 17. The credit is, however, phased out for at higher incomes.

Total exemptions claimed

Each exemption you claim reduces your taxable income by $3,700 for 2011. 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 0% or 15%.
The tax is 0% 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 un-recaptured 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).

Capital gains were scheduled to increase in 2011, however the "Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010" left them at their existing rates shown above. 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.

Business income or loss from Schedule C

Any income or loss as reported on Schedule C.

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 2011 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 2011.

Total other taxes

Any other taxes that you owe for 2011. This includes self-employment tax, alternative minimum tax, and household employment taxes.

Total tax

Grand total of your 2011 federal tax bill.

Total payments

Total of all tax payments made in 2011. This includes tax withheld from Forms W-2 and 1099, and estimated taxes paid, earned income credit and excess social security tax withheld.

calculator
definitions

2010 Tax rates

Below are the resulting tax rates and income ranges for 2010:

Filing Status and Income Tax Rates 2010 Caution: Do not use these tax rate schedules to figure 2009 taxes. Use only to figure 2010 estimates.
Tax rate	Married filing jointly or Qualified Widow(er)	Single	Head of household	Married filing separately
10%	$0 - 16,750	$0 - 8,375	$0 - $11,950	$0 - 8,375
15%	$16,751- 68,000	$8,376- 34,000	$11,951- 45,550	$8,376- 34,000
25%	$68,001- 137,300	$34,001- 82,400	$45,551- 117,650	$34,001- 68,650
28%	$137,301- 209,250	$82,401- 171,850	$117,651- 190,550	$68,651- 104,625
33%	$209,251- 373,650	$171,851- 373,650	$190,551- 373,650	$104,626- 186,825
35%	over $373,650	over $373,650	over $373,650	over $186,825

Source: http://www.irs.gov/pub/irs-drop/rp-09-50.pdf

Filing status

Filing Status for 2010
Married filing jointly	If you are married, you are able to file a joint return with your spouse. If your spouse died during the tax year, you are still able to file a joint return for that year. You may also choose to file separately under the status "Married filing separately".
Qualified Widow(er)	Generally, you qualify for this status if your spouse died during the previous tax year (not the current tax year) and you and your spouse filed a joint tax return in the year immediately prior to their death. You are also required to have at least one dependent child or step child whom which you are the primary provider.
Single	If you are divorced, legally separated or unmarried as of the last day of the year you should use this status.
Head of household	This is the status for unmarried individuals that pay for more than half of the cost to keep up a home. This home needs to be the main home for the income tax filer and at least one qualifying relative. You can also choose this status if you are married, but didn't live with your spouse at anytime during the last six months of the year. You also need to provide more than half of the cost to keep up your home and have at least one dependent child living with you.
Married filing separately	If you are married, you have the choice to file separate returns. The filing status for this option is "married filing separately".

Dependents

A dependent is someone you support and for whom you can claim a dependency exemption. In 2010, each dependent you claim entitles you to receive a $3,650 reduction in your taxable income (see exemptions below). In 2010, 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 $3,650 for 2010. You receive an exemption for yourself, your spouse and one for each of your dependents.

Capital Gain or Loss

This calculator assumes that all of your long-term capital gains are taxed at either 0% or 15%.
The tax is 0% 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 un-recaptured 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.

Business income or loss from Schedule C

Any income or loss as reported on Schedule C.

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

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 2010 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 2010.

Total other taxes

Any other taxes that you owe for 2010. This includes self-employment tax, alternative minimum tax, and household employment taxes.

Total tax

Grand total of your 2010 federal tax bill.

Total payments

Total of all tax payments made in 2010. This includes tax withheld from Forms W-2 and 1099, and estimated taxes paid, earned income credit and excess social security tax withheld.