2021 Tax Calculator

How it Works

This calculator estimates your federal income taxes for the 2021 tax year, due in 2022.

First we calculate your adjusted gross income (AGI). We consider certain above the line deductions here, which work with both the standard deduction and itemized deductions. Next, your tax is calculated according to your taxable income bracket. Credits that you qualify for are subtracted from your taxes. If this value is negative you get that amount back as a tax return.

Limitations

Note that this is not currently an extensive calculator and you will need to be familiar with what credits and deductions you qualify for in addition to the default values. Certain credits are included and up to date for 2021 in accordance with The American Rescue Plan Act: child and other dependents, earned income tax credit (EITC). You may include your own withholdings and itemized deductions yourself.

More About Deductions and Credits

The Child tax credit has been temporarily increased for the 2021 tax year by The American Rescue Plan Act from $2000 previously to $3000 per child or $3600 for children younger than age 6. This extra $1000 to $1600 will begin to be phased out by $50 per $1000 of taxable income above $75,000 for single filers ($150,000 for joint, $112,500 for head of household) until it reaches $2000 per child. Another phase out begins at $200,000 for single filers ($400,000 for joint) until the credit is $0 as in previous years. Half of this credit will be split into monthly payments between July and December, and the other half will be claimed on next years tax return. This credit is fully refundable only for the 2021 tax year.

The Earned Income Tax Credit (EITC) depends on income and number of children and is typically given to lower income families. To qualify for the EITC during the 2021 tax year, one must have at least $1 of earned income, have a maximum $10,000 in investment income, and should NOT file form 2555 or 2555-EZ. Those who are married filing separately can qualify in 2021 under certain conditions, unlike previous years. See more about eligibility for this credit here.