Calculating 2018 Tax Liability
Calculating 2018 Tax Liability
Typically, I have extra $ withheld for taxes throughout the year, so I don't owe too much. This year, I retired in May, so I had less withheld than usual, but I will earn less $ than usual. I wanted to figure out if I would owe taxes, so I could make estimated payments if necessary. I used the IRS tax calculator, which told me I would get a $5k refund. I then checked it against taxcaster, which told me I would owe $15k. What should I do next?
Re: Calculating 2018 Tax Liability
Are you sure you were using the 2018 estimate from TaxCaster?
Re: Calculating 2018 Tax Liability
I'll check again to make sure I was using the 2018 taxcaster.
edit: The version I used says it was updated 3/22/18. Is there a more recent version?
edit: The version I used says it was updated 3/22/18. Is there a more recent version?
Re: Calculating 2018 Tax Liability
How about a back of the envelope calculation, using your last year 1040 as a form.
Re: Calculating 2018 Tax Liability
The version I have does an estimate for 2017.
There is a tab that says “Looking at 2018” that gives you a 2018 estimate using the same info entered for 2017.
Re: Calculating 2018 Tax Liability
You're right. Even though it says it will calculate 2018 taxes on the first page, it says " 2017 estimated federal tax owed" when the calculation is completed. The version I have does not have a tab that says "Looking at 2018".
Re: Calculating 2018 Tax Liability
Re: Calculating 2018 Tax Liability
Yup. Does this mean that I can rely on the IRS calculation which estimates a $5k refund?delamer wrote: ↑Wed Oct 03, 2018 8:20 pmAre you using the free app?
Re: Calculating 2018 Tax Liability
I would.remomnyc wrote: ↑Wed Oct 03, 2018 8:21 pmYup. Does this mean that I can rely on the IRS calculation which estimates a $5k refund?delamer wrote: ↑Wed Oct 03, 2018 8:20 pmAre you using the free app?
Do you have the several outline lines in the upper left of the app screen?
If you click on those, you should see the looking at 2018 option in the drop down.
Or you could try doing an update for the app.
Re: Calculating 2018 Tax Liability
I like this one:
https://www.mortgagecalculator.org/calc ... ulator.php
It gave the same results as this one (using 2018 results)
https://www.hrblock.com/tax-calculator/#/en/te/aboutYou
These two usually agree with Taxcaster. Taxcaster calculates both 2017 and 2018 results at the end.
The irs calculator (which I had never heard before) gave a slightly different answer (lower).
It doesn't look like it's from the IRS...just has that name......but it is interesting since it seems to calculate
state tax (at least for CA).
OP.....sounds like you like the irs calculator results because it gives you the result you want
If would try the other 3 calculators....if they agree among themselves, I would be more inclined to trust them
over the irs calculator.
https://www.mortgagecalculator.org/calc ... ulator.php
It gave the same results as this one (using 2018 results)
https://www.hrblock.com/tax-calculator/#/en/te/aboutYou
These two usually agree with Taxcaster. Taxcaster calculates both 2017 and 2018 results at the end.
The irs calculator (which I had never heard before) gave a slightly different answer (lower).
It doesn't look like it's from the IRS...just has that name......but it is interesting since it seems to calculate
state tax (at least for CA).
OP.....sounds like you like the irs calculator results because it gives you the result you want

If would try the other 3 calculators....if they agree among themselves, I would be more inclined to trust them
over the irs calculator.
Re: Calculating 2018 Tax Liability
If you like spreadsheets you can also use excel1040.com
Probably more complex than what you need though. But could give you another data point
Probably more complex than what you need though. But could give you another data point
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Re: Calculating 2018 Tax Liability
i have found taxcaster estimator to have flaws sometimes. I use it to ballpark my taxes but I wouldn’t use it if I was actually relying on it for budget purposes. For that I would (and do) once a year, in middle of year, run the numbers myself either by running a whole tax return or just looking back to last year, and plugging in changes in my amounts and tax rates (and new tax law changes). I find the latter approach to only take 30 minutes.
Re: Calculating 2018 Tax Liability
If you itemized last year and will not this year, it can make a significant difference. Running figures comparing last year's itemization with this year's standard deduction results in a significant tax increase for us in 2018 that exceeds a slight increase in taxable income.
Tim
Tim
Re: Calculating 2018 Tax Liability
And the difference can be quite substantial at the state level depending on how state income taxes are structured. In Maryland, the standard deduction is very low so a shift to standard deduction for some people is going to be very expensive at the state level.Nowizard wrote: ↑Thu Oct 04, 2018 7:39 amIf you itemized last year and will not this year, it can make a significant difference. Running figures comparing last year's itemization with this year's standard deduction results in a significant tax increase for us in 2018 that exceeds a slight increase in taxable income.
Tim
I do volunteer tax preparation for TaxAide. I am expecting to have a lot of very tough conversations with taxpayers who end up with a February/March surprise on their state income tax return.
When you discover that you are riding a dead horse, the best strategy is to dismount.
Re: Calculating 2018 Tax Liability
I recently have been using this one:
https://www.olt.com/main/home/taxestimator.asp
that I found to be very useful.
Rick dba Yuba
https://www.olt.com/main/home/taxestimator.asp
that I found to be very useful.
Rick dba Yuba
Re: Calculating 2018 Tax Liability
For estimating 2018 taxes, the "what if?" worksheets of TurboTax, TaxAct, etc. may be the most accurate if one has an extremely complex situation.
If one has merely a "somewhat complex" situation, various web-based and spreadsheet programs are available. To date, the personal finance toolbox spreadsheet has been the most accurate (i.e., using 2018 instead of 2017 tables, including more credits, phaseouts, etc.). This includes all the options already mentioned in this thread.
If one has merely a "somewhat complex" situation, various web-based and spreadsheet programs are available. To date, the personal finance toolbox spreadsheet has been the most accurate (i.e., using 2018 instead of 2017 tables, including more credits, phaseouts, etc.). This includes all the options already mentioned in this thread.
Re: Calculating 2018 Tax Liability
OP
Sketch out your 2018 financial situation rounding to the nearest thousand dollars and post it and we will give you an estimate. Be sure to let us know your filing status
Also, probably a little late in the game to be very concerned about estimates. Moreover, missing an estimate results in interest at a modest rate and no penalties for year in which you retire if you are 62 or over, which may well be your case.
Sketch out your 2018 financial situation rounding to the nearest thousand dollars and post it and we will give you an estimate. Be sure to let us know your filing status
Also, probably a little late in the game to be very concerned about estimates. Moreover, missing an estimate results in interest at a modest rate and no penalties for year in which you retire if you are 62 or over, which may well be your case.
Re: Calculating 2018 Tax Liability
Isn't the bolded part always true so retiring/age/etc. don't change the "penalty" which is just the interest?J295 wrote: ↑Fri Oct 05, 2018 7:08 am..................................................
Also, probably a little late in the game to be very concerned about estimates. Moreover, missing an estimate results in interest at a modest rate and no penalties for year in which you retire if you are 62 or over, which may well be your case.
Re: Calculating 2018 Tax Liability
I tried the mortgage calculator and the HR Block calculator. The mortgage calculator says I will owe $2k. HR Block says I will get $7k back, but asked me for dividends and interest but did not let me enter the amounts nor my tax loss carry forward. Given how significant dividends and interest are, I know the $7k is wrong. After having tried a number of calculators, I am comfortable that whatever I owe will not trigger a penalty or significant interest. Thanks everyone.
Re: Calculating 2018 Tax Liability
I have never had that problem w/ the HRB calculator: are we using the same one? https://www.hrblock.com/tax-calculator/#/en/te/aboutYouremomnyc wrote: ↑Wed Oct 17, 2018 10:45 amI tried the mortgage calculator and the HR Block calculator. The mortgage calculator says I will owe $2k. HR Block says I will get $7k back, but asked me for dividends and interest but did not let me enter the amounts nor my tax loss carry forward. Given how significant dividends and interest are, I know the $7k is wrong. After having tried a number of calculators, I am comfortable that whatever I owe will not trigger a penalty or significant interest. Thanks everyone.
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Re: Calculating 2018 Tax Liability
Kaneohe wrote:
Almost there
Edit: found it in the Mortgage Calculator
The Mortgage Calculator worked better for me than HRB. With both I couldn't find where I would post the taxes I had deducted from my Social Security payments.I have never had that problem w/ the HRB calculator: are we using the same one? https://www.hrblock.com/tax-calculator/#/en/te/aboutYou
Almost there
Edit: found it in the Mortgage Calculator
Last edited by Almost there on Thu Oct 25, 2018 8:46 pm, edited 1 time in total.
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Re: Calculating 2018 Tax Liability
Both of those calculators are designed to calculate the tax on your income.......not to calculate the tax owed in April after your subtract your payments/withholding,etc. Just manually subtract your payments.Almost there wrote: ↑Thu Oct 25, 2018 8:37 pm]
The Mortgage Calculator worked better for me than HRB. With both I couldn't find where I would post the taxes I had deducted from my Social Security payments.
Almost there
Edit: found it in the Mortgage Calculator
I'm not sure what you found in the mortgage calculator but I bet it increases your taxes , not decreases them as you expect.
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Re: Calculating 2018 Tax Liability
Oh I know that my tax liability will increase since my Social Security increased and I will have my first RMD this year.
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Re: Calculating 2018 Tax Liability
Just thought I would point out that this applies to the 2018 tax year.Danielle896 wrote: ↑Thu Oct 25, 2018 8:44 pmHere's the spreadsheet that I like.
https://sites.google.com/site/excel1040 ... ew-tax-law
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Re: Calculating 2018 Tax Liability
Kaneohe wrote:
Used the mortgagecalculator.org and I owed $174. Just did my taxes, and according to HRB I owe $117. I consider that pretty good. Thank you Kaneohe for posting this website.» Thu Oct 25, 2018 9:34 pm
Almost there wrote: ↑
Thu Oct 25, 2018 8:37 pm
]
The Mortgage Calculator worked better for me than HRB. With both I couldn't find where I would post the taxes I had deducted from my Social Security payments.
Almost there
Edit: found it in the Mortgage Calculator
Both of those calculators are designed to calculate the tax on your income.......not to calculate the tax owed in April after your subtract your payments/withholding,etc. Just manually subtract your payments.
I'm not sure what you found in the mortgage calculator but I bet it increases your taxes , not decreases them as you expect
Re: Calculating 2018 Tax Liability
Glad you found it in the Mortgage Calculator. I was wrong......since I use the calculators only for calculating the total tax and not what I owe after w/h, est. tax, etc. I didn't realize the last section of that calculator takes that kind of input.Almost there wrote: ↑Mon Jan 14, 2019 2:50 pmKaneohe wrote:Used the mortgagecalculator.org and I owed $174. Just did my taxes, and according to HRB I owe $117. I consider that pretty good. Thank you Kaneohe for posting this website.» Thu Oct 25, 2018 9:34 pm
Almost there wrote: ↑
Thu Oct 25, 2018 8:37 pm
]
The Mortgage Calculator worked better for me than HRB. With both I couldn't find where I would post the taxes I had deducted from my Social Security payments.
Almost there
Edit: found it in the Mortgage Calculator
Both of those calculators are designed to calculate the tax on your income.......not to calculate the tax owed in April after your subtract your payments/withholding,etc. Just manually subtract your payments.
I'm not sure what you found in the mortgage calculator but I bet it increases your taxes , not decreases them as you expect
Wondering why you got the $57 difference tho........those calculators generally agree w/ each other. Might see what Taxcaster gives you.
Last edited by kaneohe on Mon Jan 14, 2019 10:33 pm, edited 1 time in total.
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Re: Calculating 2018 Tax Liability
I used 2017 numbers and am still waiting for my 1099 DIV, which may make a difference too. I just received my 1099 R today. In addition, I was able to have my taxes taken out of my Social Security payments (without guessing the amount). Either way, I am very pleased and can't thank you enough for posting it.