FEDERAL INCOME TAX ESTIMATOR

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FEDERAL INCOME TAX ESTIMATOR
(*note: print out this page, fill in the form and use the appropriate tax table to determine your estimation)

(TO BE USED WITH W-2 INCOME AND INTEREST INCOME ONLY)

FOR ESTIMATION PURPOSES ONLY

NOT TO BE USED TO PREPARE YOUR

FEDERAL INDIVIDUAL INCOME TAX RETURN

DO NOT USE IF YOU ARE QUALIFIED WIDOW WITH A DEPENDANT CHILD OR IN THE YEAR OF DEATH OF THE TAXPAYER OR SPOUSE. IF EITHER APPLY, YOU SHOULD OBTAIN PROFESSIONAL ASSISTANCE.

Select your filing status from the following:

1. Single (See Note #1)

2. Married Joint (See Note #2)

3. Married filing separate (See Note #3)

4. Head of household (See Note #4)

A. ENTER NUMBER OF PROPER FILING STATUS................................._______

B. Enter the number one if you are eligible to claim yourself as a dependant..._______

C. Enter the number one if you are married and eligible to claim your spouse

as a dependant......................................................................................…._______

D. Enter the number of other eligible dependants you may claim

(See Note #5).……………………………………………………............._______

E. Total lines B, C & D................................................................................._______

F. Add all of your Forms W-2 and enter here.....................................$____________

G. Add all of your Forms 1099-INT (Interest) and enter here.............$____________

H. Total Adjusted Gross Income (Add lines F & G above).................$____________

I. If using filing status (1) enter $ 4,500, If using filing status (2)

enter $ 7,600 If using filing status (3) enter $ 3,800 or If

using filing status (4) enter $6,650…………………...…………..$_____________

J. Multiply Line E times $2,899 and enter here................................$_____________

K. Subtract lines I & J from line H (This is your taxable income)......$_____________

YOUR ESTIMATED TAX IS.........................................................…...$_____________

This document cannot be used to prepare your actual return. The purpose of this document is only to provide an estimate of the tax you will owe. R E M E M B E R - Nothing can take the place of your accountant or professional Tax Preparer!

NOTE #1 - The single filing status applies is used if none of the other categories apply.

NOTE #2 - You can use the Joint filing status if your state recognizes your marriage and you are living together as husband and wife. You may also use this status if: (1) you are living together in a common law marriage that is recognized in the state where you live or in the state where the marriage began. (2) You are married but living apart, but not legally separated under a decree of divorce or separate maintenance. (3) You are separated under an interlocutory (not final) decree of divorce. For purposes of filing a joint return you are not considered divorced.

NOTE #3 - If you meet the requirements of NOTE #2 but do not wish to file a joint return you may file as married separate. You must remember that if your spouse is required to file they must also file Married Separate.

NOTE #4 - If a single INDIVIDUAL WISHES TO CLAIM HEAD OF HOUSEHOLD, THE TAXPAYER MUST BE A U.S. CITIZEN OR RESIDENT and MUST EITHER:

(a) Pay more than half the cost of maintaining a household that is the principal home FOR MORE THAN HALF THE YEAR for the taxpayer and a dependent relative closer than a cousin OR a non-dependant child or grandchild, OR

(b) Pay half the cost of maintaining a separate household that was the main home for a dependant parent for the entire year.

NOTE #5 - A taxpayer is allowed a deduction for each qualified dependant. To be a qualified dependant all 5 of the following tests MUST be met:

1. RELATIONSHIP OR MEMBER OF HOUSEHOLD TEST: To meet this test, an individual must live with the taxpayer all year or be a qualified relative. Qualified relatives are the taxpayer's children (including legally adopted), grandchildren, great grandchildren, stepchildren, brother and sisters (including half and step), parents (including step but not foster), grandparents, other direct ancestors, uncles, aunts, nieces, nephews, in-laws (son, daughter, parent, brother, sister -- even if the marriage was ended by divorce or death) These relatives do not have to live with the taxpayer to qualify as a dependent. Talk to your tax professional about further details.

2. GROSS INCOME TEST: The "dependent's" gross income generally must be less than $2,950. Exceptions are the taxpayer's child (i.e. son, daughter, step-daughter, stepson, adopted or foster child) who either:

a) Under age 19; or

b) A full-time student under age 24 at a regular educational institution.

3. JOINT RETURN TEST: An individual does not qualify as a dependent if the individual filed a joint return of their own. However, this rule does not apply if:

a) Neither the "dependent" nor his/her spouse was required to file;

b) Neither the "dependent" nor spouse would have a tax liability if they filed separate returns; and

c) The couple filed only to claim a refund of withholding.

4. CITIZENSHIP/RESIDENCE TEST: A dependent must be:

a) A citizen or resident of the U.S., or

b) A U.S. "national" (e.g., an American Samoan), or

c) A resident of Canada or Mexico at some time during the calendar year in which the taxpayer's tax year begins.

5. SUPPORT TEST: A taxpayer must provide more than half of the cost of a dependent's support. Exceptions to the test include multiple support agreements and children of divorced parents.

PLEASE NOTE THAT THE ABOVE 5 TESTS ARE FAR MORE COMPLICATED THAN CAN BE EXPLAINED HERE. IF YOU HAVE ANY QUESTIONS YOU SHOULD CONTACT YOUR PROFESSIONAL TAX PREPARER.

Dr. Harry E. Buehne, E.A. assumes no liability for the usage of this document. You should remember that is only an aid and should not be relied upon in place of professional tax advice or professional assistance in the preparation of your Income Tax Return.