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Although internet applications already provide your estimated income tax for a given income, filing status and tax year, they can be cumbersome when you are considering multiple “What-If” scenarios, including:

• Changing Filing Status (e.g. getting married)
• Predicting Taxes for Hypothetical Future Tax Rates and Brackets
• Calculating Both Federal and State Income Taxes Simultaneously

Fortunately, Gregory Taketa the Data Decanter has formed an easy Spreadsheet on which you can estimate your Federal and State (up to 9 brackets) Income Tax Liabilities.

Simply Input Your Estimated Taxable Income for Your Filing Status, and Voila! You can quickly estimate your Income Taxes!

You CAN:

• Compare Taxes for Different Filing Statuses
• Estimate State Taxes if 9 or fewer Tax Brackets
• Estimate Marginal Tax Rates for Financial Decisions (Should I pay off loans first or invest in stocks, given my tax situation?)
• Estimate impacts for many hypothetical Tax Brackets and Rates:

You can insert the Federal Tax Brackets and Rates for any year (up to 7 brackets), and State Tax Brackets and Rates for any year (up to 9 Brackets). Here is TY 2014 for Fed & CA.

Disclaimer: Gregory Taketa is not a Tax Professional at this time, and he is not responsible for any consequences arising from your use of this application. Please consult your Tax Advisor before making a decision.  This application may contain rounding errors and other errors.  You may contact greg@gregariousconsulting.com to report errors.

As an example of possible further analysis, my file provides a small case in which you and a partner are wondering whether there is a financial benefit to getting married.  Many experts say that normally Married Filing Jointly is useful when your incomes are disparate and not so useful when your incomes are close.  By inputting various incomes for you and your partner, you can see the Estimated Tax Differences to draw your own conclusions (again, please consult your Tax Advisor before committing to a decision).

In this example, when Taxable Incomes are close to each other, MFJ offers little cost savings from each person’s filing Singly.

This is one of many applications Gregory Taketa the Data Decanter can create to help you make tough decisions.