The Internal Revenue Service (IRS) has a number of online tools to help taxpayers calculate their taxes. One of these tools is an income-based repayment (IBR) calculator and another is the Pay As You Earn (PAYE) calculator. While both calculators can be used to determine how much one should pay in taxes, it’s important to understand the differences between them so that you can use the right tool for your needs. Let’s take a closer look at what each calculator does and how they differ.
What is an IBR Calculator?
An IBR calculator is designed to help taxpayers who have higher incomes by calculating how much they owe based on their adjusted gross income (AGI). This calculator helps people determine if they are eligible for income-based repayment plans, which can reduce monthly payments while keeping them in good standing with the IRS. When using this calculator, users need to input information such as their filing status, AGI, state of residence, and whether or not they are claiming any deductions or credits on their tax return.
What is a PAYE Calculator?
The PAYE calculator is designed specifically for those who earn less than $66,000 per year or are temporarily unemployed due to economic hardship. This tool helps users figure out how much they owe in taxes based on their current wages or unemployment benefits. It also provides information about other programs that may be available to them such as student loan forgiveness or deferral options. It’s important to note that the PAYE calculator takes into consideration changes in wage levels over time so users must make sure to update their information when needed.
Using an IBR or PAYE calculator can help taxpayers save money by ensuring they are paying only what they owe in taxes while still remaining in good standing with the IRS. It’s important to understand the differences between these two calculators so you can make sure you choose the right one for your needs. Whether you are looking for help calculating your taxes or need assistance with other IRS-related matters, Metric Marketing offers services related to both IBR and PAYE calculators that can make filing easier and more accurate. Reach out today to learn more!
Hamad Malik is a highly experienced finance manager and developer with proven experience in leading teams and managing complex financial projects. He has extensive knowledge of the PAYE system and is capable of developing PAYE calculators that accurately calculate New Zealand deductions. His expertise in financial processes and technology means he can create tools to automate paydays so that payments are always correct and on time. An innovative thinker, Hamad is passionate about developing solutions that can help businesses reach their goals quicker and easier. He embraces change and works hard to ensure each project he oversees is successful.