Need help?…IRS Tax Tables 2014…
IRS taxation system & calculating your tax burden
As you research the IRS Tax Tables 2014 keep in mind that the IRS taxation system is the type of system where you need to pay throughout the year as you generate taxable income. You cannot wait until you file your taxes and then pay your IRS taxes at that point, as the IRS Tax regulations do not allow you to pay when you file. You must pay as the income is generated through the year.
If you work for an employer how does the IRS Tax Tables 2014 affect you?
If you work for an employer, they are required to withhold the proper taxes from your paycheck. Any income in your paycheck must have taxes withheld. If you are self employed you must pay in estimated tax payments or the IRS will penalize you. The IRS will not allow you to have income and not pay any income taxes on it. The IRS Tax Tables 2014 become crucial in determining what you payments must be made ahead of time to the IRS. If you win money in the lottery or win money while gambling the IRS requires the withholding of the proper taxes. If you are self employed you must pay into the system on your own, through periodic payments during the year. The Tax brackets will tell you how much to pay in based on your estimated taxable income. You will need to estimate and pay taxes in during the year if you have any forms of income that are taxable. The IRS is going to tax you on just about any type of money flowing to you no matter where it is coming from. There are some exceptions of course, unemployment compensation or items similar to that. As you pay taxes in during the year based on the Tax estimations you will get credit for these payments when you officially file your taxes the next spring. If you do not pay enough estimated taxes, to the IRS, during the year you will get penalized by the IRS. The IRS will calculate this penalty for you, and send you a bill if you fail to pay them when you submit your taxes. There are many unanswered questions as to how the IRS rules affect everyone, because of all the uncertainty that exists with the politicians. It all depends on what congress does later in the year, as this will determine our tax liabilities for you tax year. The tables are below, but keep in mind that with the current politicians in place any of this could change anytime.
Use this 2014 IRS Tax Tables chart for tax form preparation
Items that change during the year and their affect on taxation;
The IRS regularly adjusts the deduction rates for vehicle mileage. For 2014 it has increase to fifty five and one half cents per mile. You should check this each year as it does change quite often between years. The personal exemptions that you can claim when you calculate your taxable income has gone up again this year, so that does help you when using the IRS Tax Tables. If you try to take advantage of the adoption credit, this not refundable anymore, so keep this in mind. Again in 2014 the social security withheld has been reduced to help folks during these tough economic times. These social security tax reductions will probably not continue much longer though. You should always look at the earned income credit, and this year the max adjusted gross income that you show has increased, while you can still get the income credit it is becoming harder to get these types of credits.
This is another view of the IRS Tax Tables for 2014 tax preparations…
How to determine what you need to withhold?
This is determined by how much taxable income you generate within periods of time, and how you populate your W4 tax form. Here are some of the pieces of data included on the W4. Whether you are married or not, the number of your allowances, whether you want anything extra withheld from your pay, and are you exempt from the withholding for some reason. When you populate this document you must specify these things, as you cannot just specify a dollar amount. If you want to change your withholding during the year you will need to submit an updated W4 form. The current IRS rules are obviously used and the calculations are completed while calculating the W4. You need to make sure any withholding matches the true amount you owe the IRS. when you submit your taxes if you have not calculated your withholding correctly you will owe those taxes, and you may get penalized if the withholding is below a certain threshold. Any time you change your W4 it should go into affect during your next payroll period after the 1st of the new month.
What about estimated tax and the IRS
If taxable income that you earn is not subject to any withholding then you will need to pay in the estimated tax. The estimated tax covers income from employers and if you are self employed. Basically any taxable income that generates a tax liability must be paid in as you go. You cannot wait until you file your tax returns to pay the tax. The IRS Tax brackets provide a key calculation as you estimate your taxes to pay in. Remember that self employment taxable income needs to have estimated taxes paid in, as the income occurs through the year. If you don’t pay in the correct estimated tax by the due dates you may have to pay a penalty even if you are getting a refund from the IRS. The IRS Tax Tables 2014 will always be used to calculate your taxes based on taxable income, not gross income. Generally you must pay an estimated tax if you think you will owe on thousand dollars after credits (refundable) and withholding. This one thousand dollars must also be ninety percent of your tax or it is one hundred percent of the prior year return (that you filed). Use the correct IRS Tax data when making your calculations. To calculate your tax estimation you will need known tax credits, your deductions, adjusted gross income, taxable income, and finally the taxes you owe. The IRS Tax forms will help with your calculations, and are always what you will end up using for these purposes.
Use of the tax table charts
To use the IRS Tax Tables 2014 charts you should calculate your taxable income using the IRS Tax Worksheet. You will start with your adjusted gross income and from that you will need to deduct your deductions (itemized or standard). You need to subtract your exemptions, and these are determined by who you can claim on your return. This will give you a taxable income figure that you will then use with the applicable Tax Tables for the proper tax year. Here is all the detail you need at the official IRS Site: IRS Tax Tables 2014. You need to follow the instructions exactly as to not avoid any IRS calculation errors. Again, you will always be guided back to the Tax Tables, from the IRS, for your main Tax calculation.
See this link for the Tax Tables on IRS site…This is for 2013, if you need last year… Click here…IRS Tax Tables 2013…