New York, NY -- (SBWIRE) -- 03/18/2016 -- Accountants and other tax professionals use tax brackets to determine how the IRS will assess taxes. eTax.com offers a specialized tool called the "Tax Bracket Calculator" which allows taxpayers to easily determine which bracket is most appropriate for their income level.
In theory, taxpayers would multiply their taxable income by the percentage amount in their respective tax bracket. However, it's generally not that simple. Essentially, the higher the tax bracket, the higher the taxes. Though figuring out the exact amount of taxes to be assessed can vary as income levels exceed certain tax brackets.
eTax.com's tax bracket calculator asks for simple data input including filing status, expected annual income, and estimated amount of deductions. The calculator figures the amount of income which will be taxed and the tax bracket in which that income falls. In addition, an easy to read chart is available on the website to assist taxpayers in understanding the different income limitations for each bracket by filing status.
Knowing one's tax bracket can come in handy when making large purchases, such as buying a new home. Different tax savings are offered to taxpayers who fall in specific tax brackets, so it's important to know to maximize benefits at tax time.
"Tax brackets are dependent on filing status." explained Paul Stanley of eTax.com. "eTax.com offers a filing status calculator as well, so taxpayers can find their appropriate status and know which they should use to calculate their appropriate tax bracket as well."
eTax.com is a web-based tax preparation and filing service that allows taxpayers to easily complete their federal and state returns at an affordable price. Step-by-step instruction makes it easy to understand and accurately file returns, while quality support ensures each topic is explained thoroughly. eTax.com offers toll-free phone support with real live representatives to help users through each area of the tax return and provide assistance where needed. With helpful calculators, informative blog posts, and simple instructions, eTax.com makes tax time easy, quick and affordable.