have a tx liability of 6420 and owe additional amounting to 235. I am entitled to one tax credit of 374 and another credit 563. If my employer with holds 260 every 2 weeks from my pay. How do I figure this out if I would receive a refund or I will owe a refund and how much
To figure out whether you will receive a tax refund or owe additional taxes, you need to calculate your total tax liability and compare it to the total credits and withholdings.
Here's how you can calculate it:
1. Start by calculating your total tax liability. You mentioned that your tax liability is $6,420. Subtract any tax deductions or adjustments if applicable.
2. Determine your total tax credits. You mentioned two tax credits: $374 and $563. Add them together to get the total credits, which in this case would be $937.
3. Calculate the total amount withheld from your paychecks throughout the year. You mentioned that your employer withholds $260 every two weeks. Assuming there are 26 pay periods in a year, multiply $260 by 26, which equals $6,760.
4. Subtract the total credits (Step 2) and total amount withheld (Step 3) from your tax liability (Step 1).
Total due = Tax liability - Total credits - Total amount withheld
= $6,420 - $937 - $6,760
If the result is a negative number, it means you would receive a refund. If it is a positive number, it means you would owe additional taxes.
In this case:
Total due = $6,420 - $937 - $6,760
= -$277
= -$277
Since the total due is a negative number, it means you would receive a tax refund of $277.
It is important to note that while this calculation provides an estimate, it is advisable to consult a tax professional or use tax software to accurately determine your tax liability and eligibility for tax credits.