Tax calculator: How much do I owe in taxes?

(NewsNation) — Nobody likes paying taxes, but it’s even more frustrating to get blindsided by a tax bill you never saw coming.

That’s why it’s important to have a general idea of how much tax you owe, which varies based on where you live, how much money you make and your filing status.

The IRS expects more than 140 million individual tax returns to be filed by the federal deadline on April 15. If you need more time to file your return, you can request an extension, but you need to do so by the deadline.

If you paid more to the government through the year than you were required to, then you could receive money back as a tax refund.

In 2024, the average tax refund was $3,138, and the IRS issued about 105 million refunds. That means thousands of dollars are potentially at stake when you file your federal tax return.

The NewsNation tax calculator makes it easy to estimate your tax burden.

What determines your tax bill?

Several factors determine your tax bill, but two of the most important are your income and filing status.

In the U.S., the federal income tax is progressive, which means as your income goes up, so does the tax rate.

When your income jumps to a higher tax bracket, you don’t pay the higher rate on your entire income. Instead, you are taxed only on the part that is in the higher bracket.

Currently, there are seven federal income tax brackets with rates of 10%, 12%, 22%, 24%, 32%, 35% and 37%.

Your filing status determines which rate your income gets taxed at. The five filing statuses are:

• Single: If you are unmarried or legally separated as of Dec. 31 for that tax year
• Married filing jointly: You are married, and both you and your spouse agree to file a joint return.
• Married filing separately: If you are married, but you and your spouse do not agree to file a joint return
• Head of household: You are unmarried but take care of someone else who qualifies as a dependent
• Qualifying surviving spouse: Can be claimed for the first two tax years after the death of your spouse if you meet certain requirements

If you’re unsure about your filing status, use the IRS tool here.

Depending on where you live, you may owe state income tax on top of federal income tax, which requires you to file a separate return.

How to lower your tax bill

There are a few popular ways to lower your tax bill:

• Take advantage of tax credits: A tax break that reduces your tax liability dollar for dollar, potentially increasing your refund.
  • Popular credits: Earned Income Tax Credit (EITC), Child Tax Credit (CTC), American Opportunity Tax Credit (AOTC), Saver’s Credit
• Maximize your deductions: Tax filers can claim the standard deduction, which reduces their taxable income by a specific amount. Others, particularly homeowners, may choose to itemize their deductions, lowering their taxable income by subtracting certain expenses like mortgage interest.
• Contribute to a retirement plan: Saving for the future can help lower your tax bill today. Contributing to a traditional 401(k) reduces your taxable income, which may cut your tax bill. Putting money in a traditional individual retirement account (IRA) may be tax deductible depending on your income and retirement plan at work.