Taxpayers interested in estimating the total amount of tax they pay each year can do so online, thanks to a new tool offered by the AICPA. The tool was unveiled May 15 at the AICPA’s Spring Council Meeting in Washington, D.C.
The Total Tax Insights calculator (www.totaltaxinsights.org) gives taxpayers the ability to figure out the amount of taxes they pay each year for the most common federal, state and local taxes. Although most Americans pay more than 20 different taxes in a year, 54% of respondents to an AICPA poll said they paid fewer than 10.
“Our recent national poll showed that taxpayers do not know the percentage of their income that goes to pay taxes or how many types of taxes they pay annually. AICPA’s goal is to make federal, state and local taxes more transparent and the Total Tax Insights calculator does that,” Barry Melancon, AICPA president and CEO, said in a statement.
To get an estimate, users of the calculator should input the county or city in which they live, their marital status, their federal “adjusted gross income” and their number of dependents. The Total Tax Insights calculator estimates what that taxpayer is paying on an annual basis for about 20 different taxes and provides a pie chart that shows the percentage of their total tax bill by category. The tool does not take into consideration certain deductions, credits or other adjustments, however, so actual tax bills can vary.