Federal Tax Calculation: Fill & Download for Free

Why are so many people having to pay into federal taxes this year when they didn't change their witholding on their W-4's?Here are some step-by-step reasons for why taxes have gone up on your return for 2018:The standard deduction changed and exemptions were removed. Single people with no kids won’t see too much change - what used to be a standard deduction of $6500 with one exemption of $4,150 has now become a single standard deduction of $12,000. Sounds great, right? That’s actually an increase to the deduction of $1,350. But now that exemptions are gone, what if you’re single with 3 exemptions? You used to be able to file $6500 single, plus 3 times the exemption of $4,150: a total of $18,950. Now you only get the standard deduction of $12,000, so you’ve lost $6,950.Let’s say you’re married filing jointly with 2 kids. Married standard deduction used to be $13,000, with each exemption at $4,150. Now the standard deduction is $24,000, with no exemptions. Was: $13,000 + ($4,150 * 4 = $16,600) = $29,600, whereas now it’s only $24,000. You’ve lost $5,600.What the above two points mean is that if you’d previously been setup on your W4 to claim Single Filing 0 exemptions, you were having the maximum taxes withheld from your check. For people who actually are single with no exemptions, you’re likely to still get a refund. For everyone else, your taxes have increased because the personal exemptions are gone. If you’d been filing as MJ with 4 exemptions, your paychecks didn’t withhold nearly enough to address the changes and you most likely owe quite a bit.NEXT: Several deductions have been removed from being exempted. If you itemized your tax forms, things like moving expenses, tax preparation expenses, unreimbursed employee expenses, transportation reimbursements, employer paid parking, and casualty and theft losses (except those attributable to a federally declared disaster) are no longer tax exempt. Itemization will no longer be needed for millions of households because the tax credits are now gone.And here’s the biggest change that will impact your amount due, if you live in a state with state and/or local withholding. Those amounts used to reduce the amount of federal taxes, whereas now they do not. So if you had $4,500 in state withholding in the past, your federal taxes would be reduced by that amount. Not anymore.TL;dr: Changes in the taxability of deductions (removing tax exemptions), removal of the personal exemption calculation for each person in your household, and the removal of state and/or taxes from federal tax deductions have all increased the amount due on your federal tax return. If you had been filing Single Filing 0 exemptions prior to 2018, you may still see an impact, but maybe not as much. If you had previously been filing Married Filing Jointly with 4 exemptions, you’re getting a significant increase in the amount you owe now.The 2018 tax brackets helped offset this somewhat, which is why you saw a bit of an increase in your paycheck each pay period. However, there’s a promise that those tax brackets won’t be as kind, and/or the standard deductions will be reduced, each year for the next 4 years the bill is in effect.This is the bill the GOP promised would help you. Now you’re seeing the proof that it won’t.

This is your net gross Salary with California and Federal taxes. Calculate net paycheck, state and federal taxes, estimate salary in California

As a general rule yes state taxes are fully deductible. There are some other tax criteria that could impact your taxes being fully deductible such as the Alternative Minimum Tax calculation or itemized deduction phaseout, which could effectively reduce your deduction, depending on your individual adjusted gross income level.