Federal Income Tax Calculator 2022 in Excel, OpenOffice Calc, and Google Sheets to calculate your tax liability or tax refund.
Just enter your applicable amount and this template will calculate the Federal Income Tax liability for you. Moreover, it consists of maximum deductions and credits to lower your tax liability or even get a tax refund.
This template can be useful to individuals and couples who are willing to calculate federal income tax on their own. Furthermore, Tax Agents and Tax consultants can use this template for the initial evaluation of their clients.
Table of Contents
Download Federal Income Tax Calculator 2022
We have created a Federal Income Tax Calculator 2022 with predefined formulas and functions. This template helps calculate income tax liability or tax refund for the tax year 2022.
Download by clicking below on the desired format:
Additionally, you can also download other useful templates like Recovery Rebate Credit Calculator, Employee Retention Credit Calculator 2021, Payroll Template With Attendance, Timesheet Template, Paycheck Calculator, Job Application Tracker, Business Mileage Log Template, and IRS Compliant Mileage Log Template.
Furthermore, feel free to contact us for the customization of this template as per your requirement. We also design new templates based on your needs. You can hire us for our services on Fiverr or directly contact us at email@example.com.
Components of Federal Income Tax Calculator 2022
Federal Income Tax Calculator 2022 consists of the following 8 sections. Fill in the details as per the guidelines to evaluate your federal income tax for the year 2022.
This section consists of your filing status and information about dependents.
Select your filing status from the dropdown list. There are 5 different filing status file statuses. Based on your filing status your income thresholds and tax rates are determined.
Moreover, filing status also determines the amount of standard deductions, personal exemptions, deductions, and tax credits. It should be kept in mind that your filing status is to be selected based on your marital status on the last day of the financial year.
Select Filing status as single if you are unmarried, divorced, or legally separated as of the end of the year.
Married Filing Separately
This option is for those filers who are married and choose to file their income tax separately.
Married Filing Jointly
Select this option if you are married and choose to file jointly. In case the spouse dies during the tax year, still you can choose to file a joint tax return only for that year.
Head of Household
This is the status of unmarried people who pay more than half of the expense of maintaining a home. The residence has to be the primary residence of the tax filer and at least one eligible dependent.
If you’re married but haven’t lived with your spouse for the last six months of the year, you can pick this status. But in this case, you must have to be contributed more than half of the cost of maintaining your house and have at least one dependent kid.
Qualified Widow or Widower
If you and your spouse filed a joint tax return in the year before their death, you are generally eligible for this status for two years following their death. You must also have at least one dependent kid or stepchild for whom you are the primary provider.
Insert the number of dependents in each category along with their ages.
In 2021, you may be eligible for a $3,000 tax credit for each child aged 6 to 17. A tax credit of up to $3,600 is available for children under the age of 6, and a tax credit of up to $500 is available for other eligible dependents.
Income from Wages, Salary, and Tips
Add up all of your wages, salaries, tips, etc. Insert only the amount for the principal taxpayer in this section. In case you are filing jointly with your spouse then insert their amount on the right side. It should also include any tips that you haven’t disclosed to your employer, such as assigned tips that show in box 8 of your W-2 form(s).
If your amount in Line 5 of Form W-2 is different then use the next section. While calculating the template will use the amount whichever is higher. If you’re unclear about the amount or don’t have access to your W-2 form, enter $0 here
Income From Other Sources
Insert only those amounts that apply to you. This section consists of the following heads:
Dividends (Includes any qualified dividends)
Qualified Dividends (Included in Dividends above)
Taxable Refunds of State and Local Income Taxes
Business Income or Loss as per Schedule C and E subject to self-employment Taxes
Spouse’s Business Income or Loss as per Schedule C and E subject to self-employment Taxes
Short Term Capital Gain or Loss
Long Term Capital Gain or Loss
Other Gain or Losses
Taxable IRA Distributions
Taxable pensions and annuity distributions
Income from Rentals, royalties, S Corporations, and Schedule E (Not included and subject to NIIT)
Income from Rentals, royalties, S Corporations, and Schedule E (Not included and not subject to NIIT)
Farm Income or Losses (Schedule F)
Total Unemployment compensation
Social Security Benefits
Taxable Social Security Benefits(85%)
Note: Fill information in the Spouse’s Business Income only if the filing status is Married Filing Jointly.
Moreover, 85% of the total Social Security Benefits are taxable. Thus, insert the full amount in the cell and it will automatically calculate the 85% amount in the next cell.
Gross Income = Income from Wages, Salaries, tips, etc + Income from Other Sources
Adjustments to Gross Income To Derive Adjusted Gross Income (AGI)
IRS allows some deductions in the form of adjustments to lower your taxable income. The amount left after these adjustments is called Adjusted Gross Income (AGI).
If you are filing jointly kindly insert the sum of both your and your spouse’s amounts.
These Adjustments include the following:
Business Expenses (Form 2106)
Health Savings Account (HSA) Deduction (Form 8889)
50% of Self-Employment Tax (Schedule SE)
Self-employed SEP, SIMPLE and qualified plans
Self-employed Health Insurance Deduction
Early Withdrawal Penalty from Certificate of Deposit or a Time-Deposit account before maturity
Student Loan Interest Deduction
You can deduct up to $300 in expenditures if you were a “qualified educator” in 2022. If you are married and both of you are ‘eligible educators,’ the cap is $600 ($300 each) if you file jointly.
From kindergarten through 12th grade teachers, instructors, counselors, administrators, or assistants who have worked at least 900 hours in a school during the school year are eligible.
Insert only those amounts that apply to you.
Adjusted Gross Income = Gross Income – Adjustments
IRS also allows many deductions to deduct from your AGI that help to reduce your taxable income. There are two types of deductions: Standard Deductions as well as Itemized Deductions.
The standard deduction for the year 2021 according to filing status is as below:
Married Filing Joint – $25,100
Qualified Widow(er) – $25,100
Single – $12,550
Heads of Household – $18,800
Married Filing Separately – $12,550
You are eligible for an additional $1350 per person if you and/or your spouse are above 65. Moreover, an additional $1350 for you or your spouse if any or both are blind.
Just select “Yes” in the column and it will automatically add to the standard deduction calculations.
Itemized Deductions include the following:
Medical and Dental Expenses and medical insurance premiums exceeding the 7.5% of AGI
State and Local Income Taxes
State and Local Sales Taxes
Real Estate Property Taxes
Personal Property Taxes (eg. registration fees of a motor vehicle)
Home mortgage Interests
Interest paid on Investments (eg. margin interest)
Gifts to charities and Churches
Donations in Cash to Charities and Churches
Losses due to casualty or theft
Non-reimbursed Employee expenses by your employer
Fees paid for Tax Preparation
Gambling Losses to the extent of gambling winnings
Enter all of your eligible medical and dental costs for the calendar year. It can include health insurance premiums that you paid for yourself (rather than via an employer-sponsored plan) and did not deduct elsewhere.
Only the portion of your adjusted gross income (AGI) that exceeds 10% of your AGI is deducted (if you are 65 or older it is 7.5 percent of your AGI).
You can choose between standard and itemized deductions. Insert the amount for both and the template will choose whichever is higher.
Taxable Income Calculations
This section calculates the taxable income. It consists of the following heads:
Adjusted Gross Income (AGI)
Standard Deduction / Itemized Deduction
Qualified Business Income Deduction (Form 8995)
Taxable Income = AGI – Standard/Itemized Deductions – Qualified Business Income Deduction
Furthermore, please note that the template displays standard or itemized deductions whichever is higher.
This section calculates the tax liability before deducting the applicable tax credits.
In this section, insert the following amounts:
Minimum Tax Amount
Tax Bracket Lower Limit
Excess Advance Premium Tax Credit Repayment (Form 8962)
Total Alternative Minimum Tax (AMT)
Kindly click on the link below to know your tax rate, Minimum Tax Amount, and Tax Bracket Lower limit.
This will display the amount of tax liability before tax credits.
This is the final step for calculating your tax liability. IRS allows multiple tax credits that help you reduce your tax liability or even help you get a tax refund.
Usually, the following Tax Credits apply to filers:
Foreign Tax Credit (Form 1116)
Credit for Child and Dependent Care Expenses (Form 2441)
Education Credits (Form 8863 line 23)
Retirement Savings Contribution Credit (Form 8880)
Dependent Tax Credits
Residential Energy Credits (Form 5695)
American Opportunity Credit non-refundable
Earned Income Tax Credit
Employee Retention Credit 2021
Insert the tax credits that apply to you. Click on the link below to find the amount of each credit applicable to you:
Lastly, the template displays the Estimated Tax Liability for the Year 2022.
Tax Liability = Tax Before Credits – Tax Credits
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Disclaimer: This article is for information and educational purpose. Information provided here shall not be treated as tax advice. Kindly consult a tax expert before filing your tax return.