Here's How to Use Taxable Income Tables to Calculate What You Owe

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Here's How to Use Taxable Income Tables to Calculate What You Owe

Each year, as W-2 forms start arriving in the mail and accountants find their schedules booked, millions of Americans have income taxes on their minds. Self-employed individuals might wonder if they’ve paid enough quarterly taxes. Employees might worry whether they calculated deductions on their W-4s correctly. Beginning investors might have concerns about reporting capital gains.

Whether you’re a freelancer, a salaried employee or a retiree, tax strategy can be confusing and tax season can be confounding. Fortunately, there’s a variety of resources available that can limit some of the uncertainty surrounding your filing process. The IRS has created easy-to-use charts called taxable income tables to help take the guesswork out of understanding the amount of income taxes you owe. Knowing how these tables work can help simplify your personal filing process before Tax Day rolls around.

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