New Tool Designed to Help Taxpayers Better Understand their Tax Obligations
Earlier this month, the AICPA introduced the Total Tax Insights calculator. This tool is designed to give U.S. taxpayers a clearer picture of their estimated total federal, state and local tax obligation. The calculator is powered by a database of more than 20 federal, state and local taxes for 3,035 U.S. countries, the District of Columbia and Puerto Rico. The database includes many of the taxes and deductions commonly recorded when preparing individual tax returns.
The goal of the calculator is to give individuals a better idea of the various taxes that impact them. Total Tax Insights gives a personal estimate of the total taxes a user would pay in a specific location based on specific data inputs. The data inputs include these five categories: where you live, income information, your home, personal expenses and other. Then a pie chart will show the percentage that each tax contributes to the total bill. Essentially, the AICPA wants users to come away with a better understanding of where they stand financially and help them with tax planning and other financial decisions.
For more information, please visit the Journal of Accountancy.