1. Income Fields
The first five fields allow you to input your income from different sources, such as restaurants, construction, IT services, freelancing, and investments.
Enter the annual income you earn from each of these activities in dollars. These fields help you account for all possible income sources to calculate your total taxable income accurately.
2. Total Deductions
This field is for entering the total deductions you are eligible for, such as business expenses, medical costs, or education-related deductions.
These deductions reduce your taxable income, ensuring you only pay taxes on the remaining amount after accounting for allowable reductions.
3. State Tax Rate
This field displays the New York state tax rate, which is pre-set at 6.85%. However, you can adjust this rate if there are updates to the tax laws or if you are calculating based on a different tax year. The state tax rate is applied to your taxable income to determine your state tax liability.
4. Federal Tax Rate
The federal tax rate field shows the percentage of federal taxes you owe. It is pre-set at 22%, which corresponds to one of the common federal tax brackets. You can modify this rate to reflect your actual federal tax bracket based on your total income.
5. Calculate Tax Button
After filling in all the required fields, clicking the "Calculate Tax" button performs the necessary calculations. The script takes your income, deducts the total deductions, and applies the state and federal tax rates to give you a comprehensive breakdown of your tax obligations.
6. Tax Result Section
The result section displays a detailed breakdown of your taxable income, state tax, federal tax, and the total tax payable. This section provides clarity and transparency, making it easier for you to understand how the taxes are computed and what you owe.