When trying to stay ahead of the "hit out of left field" feeling that comes with tax season, an easy way to calculate how much tax you should have paid for the prior fiscal year can be computed through the IRS tax tables.
The IRS tax table will help you outline exactly how much money you should have paid for each increment of income up to $100,000. It's a cut and dried method whereupon you look for the annual income figure that matches what you've earned and you can than see the exact amount of tax you're expected to pay.
The IRS tax tables also figure out tax bracket calculations so that it's easier for you to determine the correct amount you owe without having to calculate the percentages for each individual tax bracket.
IRS tax tables can also help business owners simplify what they need to withhold from employee earnings, even if your staff is hourly and not salary. IRS tax tables can tell you at a glance how much you need to deduct from each employee.
An added benefit from owning your own copy of the IRS tax table is that periodically throughout the year, you will be able to monitor and track how much tax you've been paying. For example, if you receive a pay raise during the year, you can than check if your employer is paying enough tax to ensure that you get a refund instead of owing.
Alternatively, if you've lost your job or been on workers compensation, IRS tax tables will be able to show you if you've overpaid through the year and then calculate if you're due for a refund or not. Also, if your IRS tax table suggests that you haven't been paying enough taxes during the year, you can increase the amount of tax you pay to avoid receiving a bill at the end of the fiscal year. That realization can also help galvanize you into finding a few extra tax deductions that will certainly help you increase the amount of tax refund you receive come tax time.
Due diligence is key when researching websites that offer downloads of the IRS tax tables. The best way is to download them directly from the Internal Revenue Service website or office.