The calculator is a tool to help you understand how current tax policy affects real families and what would happen if we changed that policy. With this version, you'll be able to compare today's law—with all of the 2001-2003 tax cuts still in place—against two alternatives to see how different taxpayers would make out: 1. tax law if all the 2001-2003 tax cuts (often called the "Bush tax cuts") expire, as is scheduled to happen in 2011; 2. tax law as proposed in President Obama's 2011 Budget, which would let the 2001-2003 tax cuts expire only for high-income taxpayers. The calculator is not tax preparation software—it leaves out lots of details you’d need to know to complete a tax return. But it will give you a general idea of how the federal income tax affects real people.Note: the Tax Calculator estimates the impact of proposed tax policies on typical taxpayers. It it not a tax preparation tool. For ease of use, many items that would be included on actual tax returns are omitted. Numbers generated by the Tax Calculator cannot be applied to specific tax returns. How to Use the Calculator1. Sample Taxpayers. The easiest way to see the effects of tax policy changes is to select and compare our sample taxpayers (below). For each sample taxpayer, income and expense variables can be modified but basic demographics are fixed. 2. Create Your Own Example. To examine a different family composition, create a customized analysis by submitting answers to questions about a hypothetical taxpayer's personal status, income, and deductions. 3. Need help? Click on a variable for more information on each term within the calculator. |
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