How Much Will I Owe in Taxes 2011, 2012?

Are you asking yourself, how much will I owe in Federal Taxes?

If you decide to prepare your taxes yourself, you have to know how your taxes will be paid first. The payment method varies according to how you receive your income. If you are employed by a company, your employer will withhold taxes from your paychecks and send the amounts withheld to the IRS, and maybe your state government too. In this case, the task of calculating your income taxes is taken care of by your employer, and you will be notified of the amount of taxes paid.

The process of preparing taxes gets more complicated if you are a self-employed person or have other forms of income besides your salary. You may be required to pay estimated taxes every quarter. Some of the types of income that are subject to estimated taxes include business earnings, dividends, interest income, gains from stock sales and other assets, alimony, and others.

If you do not have all the necessary records to calculate your taxes, you can get them from your local IRS or the national IRS. There should be a local IRS office in your locality, and you can go there to obtain your Record of Account or IRS Transcript. If you decide to get your records from the national IRS office, you can call its toll free number to make your request. It will take one or two weeks for the records to be delivered to you. To request a Record of Account, you need to fill out Form 4506-T, which is also called the “Request for Transcript of Tax Return”. This document will reveal all the tax liabilities, adjustments, and payments for a certain year, and it will show the balances for different tax periods.

Another way that you can find out how much taxes you have to pay is to engage the service of a tax professional. A tax attorney, EA, CPA, or other professional tax preparers can exercise the power of attorney to help you find out exactly how much you need to pay the IRS. These professionals can also provide advice on how to resolve your back taxes. However, you have to be prepared to pay a considerable amount of money if you choose to hire a tax professional.

The best thing to do is to use tax software to calculate your taxes. There are many free tax calculators on the Internet that you can use to get an estimate of the amount of taxes you owe. You can also purchase software that can handle the entire tax preparation process. Such software is very affordable, and it can make tax preparation easier, faster, more accurate, and more rewarding.