answersLogoWhite

0


Best Answer

To calculate income tax, one should sum up the totals of all the taxable income and subtract from it the personal allowance and any other tax free allowances. After that, one should apply the rate of tax on the resultant value to find out the income tax payable.

User Avatar

Wiki User

10y ago
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: What formula do you use to calculate income tax?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

What formula do you use to calculate national income?

The Product MethodThe Income Method or theThe Expenditure Method


How do you compute the tax due if my taxable income is 30000?

Use the formula supplied by the tax authorities in the country in which your reside.


Which software would allow me to calculate my income tax free?

Turbo Tax and TaxAct both allow you to calculate your income tax free. However, if you want to e-file or use some of the more professional forms, that will cost extra.


What is the answer to Whittenburg Income Tax Fundamentals Comprehensive Problem Two Appendix D?

Jonathan is a 35-year old single taxpayer with adjusted gross income of 45000. He uses the standard deduction and has no dependents. (A)Calculate Jonathan's taxable income . B.When you calculate Jonathan's tax liability are you required to use the tax tables or the tax rate schedules, or does it matter? c. What is Jonathan's tax liability


How do you use the word income tax in a sentence?

Income tax is boring but necessary.Something was dodgy about these income tax claims.


What formula would you use to calculate the net profit margin?

You take the Earning before interest and taxes (EBIT)/sales=Operating profit margin


How does someone use a income tax calculator?

To use an income tax calculator you will need to gather and fill in some information. It can be helpful to have a W-4 form filled out before hand. Fill in all of the blank spaces on the calculator and it should calculate you maximum refund.


Is income tax an expense?

Yes. Depending on the specifics, it may or may not be a TAX DEDUCTIBLE expense, but it is most certainly an expense. (For example, your (or a Cos) state income tax is an expense, it pays it, its bottom line - the money it has to give to its owners is lowered by it), but and it is a deduction (or expense) against FEDERAL taxable income. But it is noot an expense in calculating the income you pay the State Tax on. Just like the Federal tax is NOT an expense (deduction) you can use to calculate the State Taxable Income on.


How do i calculate tax liability of an ordinary income of 1500000?

510,000 is the answer. you have to use the equation based on a chart. for this i used 113,900+(.34(1,500,000-335,000))


What must you subtract to calculate income before taxes?

Add all of your total worldwide income together on your 1040 income tax return. Then if you have any adjustments to income you subtract that amount from your total income to arrive at your adjusted gross income on your 1040 federal income tax return. From your AGI you would then subtract your standard deduction amount or if you use the schedule A itemized deduction form of the 1040 tax form the itemized deduction amount whichever amount would reduce your taxable income the most. After doing that you have determined your taxable income amount that you will use to determine your federal income tax liability amount on.


To use direct tax in a sentence?

An income tax is an example of direct tax.


How does the court calculate child support when father is wealthy?

Child support is usually based on a state-decided formula and they use the same formula regardless of the income level of the parents.