This calculator provides the effective federal and state income taxes owed on an individual's earnings. The federal taxes are calculated utilizing the actual taxes paid by individuals similar to your client. State taxes are calculated utilizing that state's tax tables, if applicable.
When Attorneys Use This Calculator
Attorneys utilize this calculator to assist in determining their clients' federal and state tax liabilities. This calculator is often used in cases in which the historical taxes of an individual are either unknown or do not accurately represent an individual's tax liabilities.
Note that in many states taxes do not need to be accounted for in determining economic damages. For example, in Pennsylvania taxes are explicitly ignored, while in Connecticut taxes are deducted from lost earnings.
For a calculation of your client's tax liabilities and economic damages, complete a case form and a consultant will contact you shortly.
Terms and Conditions
Please read the Terms and Conditions before using the calculator.
The effective federal and state income tax rates provided by this calculator are determined as follows.
Effective federal income tax rates are based on the taxes paid of similar individuals to the information entered. Effective federal income tax rates are calculated utilizing the IRS' Individual Statistical Tables. Table 1.2 details the total number of returns, total adjusted gross income (AGI), and total income tax paid by various sizes of AGI. The table is further detailed by various return types such as married filing jointly or single filer. For years after 2013, the 2013 effective tax rates are utilized.
The effective rate of federal taxes paid is calculated for each size of AGI by first calculating the average AGI and average taxes paid by each AGI bracket. Next, the average effective federal tax rate is calculated for each AGI bracket by dividing the average taxes paid by the average AGI for that AGI bracket. Finally, the calculated effective federal tax rate is determined from the weighted average of effective rates of the two AGI brackets closest to the individual's annual earnings.
State income taxes are calculated utilizing the state's 2014 tax tables. The state's standard deduction and exemption are subtracted from the earnings entered in the calculator. The tax tables are then utilized with the remaining earnings, taxable earnings, to determine the state income taxes. Those taxes are then utilized to determine the effective state income taxes.