Tax Calculator Based on Income

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Income Tax Calculator

Estimate Your Income Tax

Enter your financial details below to calculate your estimated income tax liability. This calculator uses simplified tax brackets and common deductions for illustrative purposes. Consult a tax professional for personalized advice.

Enter your total gross annual income.
Enter your total eligible deductions (e.g., mortgage interest, charitable donations).
Enter your total applicable tax credits.

Your Tax Summary

Estimated Income Tax Due
Taxable Income
Gross Tax Liability
Net Tax After Credits
How it's calculated: Taxable Income = Annual Income – Deductions. Gross Tax Liability is calculated based on progressive tax brackets applied to Taxable Income. Estimated Income Tax Due = Gross Tax Liability – Tax Credits.

Tax Bracket Breakdown

Tax Calculation Details

Taxable Income Distribution by Bracket
Tax Bracket Rate Taxable Amount in Bracket Tax for Bracket
Enter your details and click "Calculate Tax".

What is an Income Tax Calculator?

An income tax calculator is a digital tool designed to help individuals estimate their federal income tax liability based on their reported income, eligible deductions, and applicable tax credits. It simplifies the complex process of tax computation by applying current tax laws, rates, and bracket structures to user-provided financial data. This tool is invaluable for financial planning, budgeting, and understanding how various income and deduction scenarios might impact your overall tax burden.

Who Should Use an Income Tax Calculator?

Virtually anyone who earns income and is subject to income tax can benefit from using an income tax calculator. This includes:

  • Employees with W-2 income.
  • Self-employed individuals and freelancers with 1099 income.
  • Investors with capital gains or dividend income.
  • Retirees receiving pensions or withdrawals from retirement accounts.
  • Individuals planning for major financial events like buying a home or starting a business.
  • Anyone seeking to understand the impact of potential changes in income, deductions, or tax laws on their finances.

Common Misconceptions about Income Tax Calculators

Several misconceptions surround income tax calculators:

  • They provide exact tax figures: Most calculators offer estimates. Actual tax liability can vary due to specific tax situations, state taxes, and last-minute adjustments.
  • They replace a tax professional: While helpful, these tools don't account for every nuance of tax law or personal financial complexity.
  • All calculators are the same: Calculators vary in accuracy, the tax year they use, and the types of income, deductions, and credits they consider.
  • They are only for complex returns: Even individuals with simple tax situations can use them for better financial foresight.

Income Tax Calculator Formula and Mathematical Explanation

The core of an income tax calculator relies on a series of calculations that progressively narrow down your gross income to your final tax due. Here's a step-by-step breakdown:

  1. Calculate Taxable Income: This is the portion of your income that is actually subject to tax. It's determined by subtracting eligible deductions from your gross income.
    Taxable Income = Annual Income - Deductions
  2. Determine Gross Tax Liability: This involves applying the progressive tax bracket system to your taxable income. Different portions of your taxable income are taxed at different rates. The rates increase as income rises.
    Gross Tax Liability = Sum of (Taxable Amount in Bracket * Rate for Bracket) for all applicable brackets
  3. Calculate Net Tax After Credits: Tax credits directly reduce your tax liability dollar-for-dollar, making them more valuable than deductions.
    Estimated Income Tax Due = Gross Tax Liability - Tax Credits

Variable Explanations

Understanding the variables used in the calculation is crucial:

Income Tax Calculation Variables
Variable Meaning Unit Typical Range
Annual Income Total gross income earned from all sources before any deductions or taxes. Currency (e.g., USD) $0 – $1,000,000+
Deductions Expenses that can be subtracted from gross income to reduce taxable income (e.g., standard deduction, itemized deductions like mortgage interest, state and local taxes, charitable contributions). Currency (e.g., USD) $0 – $50,000+ (highly variable)
Taxable Income The amount of income subject to taxation after deductions. Currency (e.g., USD) $0 – $1,000,000+
Tax Bracket Income ranges defined by the government, each associated with a specific tax rate. N/A Defined by tax law (e.g., 10%, 12%, 22%, etc.)
Tax Rate The percentage of income taxed within a specific bracket. Percentage (e.g., 10%, 22%) Varies by bracket and filing status
Gross Tax Liability The total tax calculated based on taxable income and tax brackets before considering credits. Currency (e.g., USD) $0 – $300,000+
Tax Credits Direct reductions to the amount of tax owed. Currency (e.g., USD) $0 – $10,000+ (e.g., child tax credit, education credits)
Estimated Income Tax Due The final amount of tax owed after applying deductions and credits. Currency (e.g., USD) $0 – $300,000+

Practical Examples (Real-World Use Cases)

Let's illustrate how the income tax calculator works with practical scenarios:

Example 1: Single Filer with Standard Deduction

Scenario: Sarah is single, earns $60,000 annually, and takes the standard deduction. For simplicity, let's assume a standard deduction of $13,850 (a common figure for a past tax year) and no tax credits.

  • Inputs:
    • Annual Income: $60,000
    • Deductions: $13,850 (Standard Deduction)
    • Tax Credits: $0
  • Calculation:
    • Taxable Income = $60,000 – $13,850 = $46,150
    • Assuming tax brackets (simplified): 10% on first $10,275, 12% on income between $10,276 and $41,775, 22% on income above $41,775.
    • Tax on first $10,275 = $10,275 * 0.10 = $1,027.50
    • Tax on income $10,276 to $41,775 ($31,500) = $31,500 * 0.12 = $3,780.00
    • Tax on remaining income ($46,150 – $41,775 = $4,375) = $4,375 * 0.22 = $962.50
    • Gross Tax Liability = $1,027.50 + $3,780.00 + $962.50 = $5,770.00
    • Estimated Income Tax Due = $5,770.00 – $0 = $5,770.00
  • Output: Estimated Income Tax Due: $5,770.
  • Interpretation: Sarah can expect to owe approximately $5,770 in federal income tax for the year.

Example 2: Married Couple with Itemized Deductions and Child Tax Credit

Scenario: The Smiths are married filing jointly. Their combined annual income is $120,000. They have $25,000 in itemized deductions (mortgage interest, property taxes) and qualify for a $2,000 child tax credit.

  • Inputs:
    • Annual Income: $120,000
    • Deductions: $25,000 (Itemized)
    • Tax Credits: $2,000 (Child Tax Credit)
  • Calculation:
    • Taxable Income = $120,000 – $25,000 = $95,000
    • Assuming married filing jointly brackets (simplified): 10% on first $20,550, 12% on income $20,551-$83,550, 22% on income above $83,550.
    • Tax on first $20,550 = $20,550 * 0.10 = $2,055.00
    • Tax on income $20,551 to $83,550 ($63,000) = $63,000 * 0.12 = $7,560.00
    • Tax on remaining income ($95,000 – $83,550 = $11,450) = $11,450 * 0.22 = $2,519.00
    • Gross Tax Liability = $2,055.00 + $7,560.00 + $2,519.00 = $12,134.00
    • Estimated Income Tax Due = $12,134.00 – $2,000 = $10,134.00
  • Output: Estimated Income Tax Due: $10,134.
  • Interpretation: The Smiths can expect to owe approximately $10,134 in federal income tax, significantly reduced by their itemized deductions and the child tax credit.

How to Use This Income Tax Calculator

Using this income tax calculator is straightforward. Follow these steps to get your estimated tax liability:

  1. Enter Annual Income: Input your total gross income from all sources for the tax year. This includes wages, salaries, tips, self-employment earnings, interest, dividends, etc.
  2. Enter Deductions: Provide the total amount of deductions you are eligible for. This could be the standard deduction or itemized deductions if they exceed the standard amount. Common itemized deductions include mortgage interest, state and local taxes (SALT), medical expenses (above a certain threshold), and charitable contributions.
  3. Enter Tax Credits: Input the total value of any tax credits you qualify for. Examples include the Child Tax Credit, education credits (like the American Opportunity Tax Credit or Lifetime Learning Credit), energy credits, and retirement savings contributions credits. Remember, credits reduce your tax bill directly.
  4. Click "Calculate Tax": Once all fields are populated, click the button. The calculator will process your inputs and display the results.

How to Read Results

  • Estimated Income Tax Due: This is the primary figure – the amount of tax you are estimated to owe the government.
  • Taxable Income: Shows the income amount after deductions, which is used to determine your tax bracket.
  • Gross Tax Liability: The total tax calculated based on your taxable income and the tax brackets before any credits are applied.
  • Net Tax After Credits: The final estimated tax liability after subtracting applicable tax credits.
  • Tax Bracket Breakdown Table & Chart: These provide a visual and detailed view of how your income is taxed across different rate tiers.

Decision-Making Guidance

Use the results to inform financial decisions:

  • Budgeting: Ensure you have enough funds set aside to cover the estimated tax due.
  • Tax Planning: Explore strategies to increase deductions or qualify for more credits to potentially lower your tax bill. For instance, if you're close to a higher tax bracket, understanding the threshold can help you manage income or deductions.
  • Investment Decisions: Consider the tax implications of different investment types (e.g., tax-advantaged accounts vs. taxable accounts).
  • Consult a Professional: If your situation is complex or the results are unexpected, consult a qualified tax advisor.

Key Factors That Affect Income Tax Results

Several factors significantly influence the outcome of an income tax calculator and your actual tax liability:

  1. Filing Status: Your filing status (Single, Married Filing Jointly, Married Filing Separately, Head of Household, Qualifying Widow(er)) dramatically affects tax brackets, standard deduction amounts, and eligibility for certain credits.
  2. Income Sources: The type of income matters. Wages, self-employment income, capital gains, dividends, interest, and rental income are often taxed differently. For example, long-term capital gains typically have lower tax rates than ordinary income.
  3. Deductions (Standard vs. Itemized): Choosing between the standard deduction and itemizing deductions is critical. Itemizing is beneficial only if your total itemized deductions exceed the standard deduction amount for your filing status. Factors like mortgage interest, state and local taxes (SALT), medical expenses, and charitable donations influence this choice.
  4. Tax Credits: These are dollar-for-dollar reductions of your tax liability and are generally more valuable than deductions. Common credits include those for children, education expenses, energy efficiency improvements, and retirement savings. Eligibility criteria vary widely.
  5. Tax Law Changes: Tax laws are subject to change. New legislation can alter tax rates, bracket thresholds, deduction limits, and credit availability, impacting calculations year over year. Always ensure your calculator uses current tax year data.
  6. State and Local Taxes: While this calculator focuses on federal income tax, state and local income taxes also contribute to your overall tax burden. Some state taxes may be deductible federally (subject to SALT limitations), creating an interplay between different tax levels.
  7. Retirement Contributions: Contributions to pre-tax retirement accounts like 401(k)s or traditional IRAs reduce your current taxable income, thereby lowering your immediate tax liability.
  8. Investment Gains and Losses: Realizing capital gains from selling assets can increase your taxable income. Conversely, capital losses can sometimes offset capital gains and even a limited amount of ordinary income.

Frequently Asked Questions (FAQ)

Q1: Is this income tax calculator accurate for all situations?
This calculator provides an estimate based on common tax rules and the data you input. It may not account for every specific tax situation, complex financial instruments, or niche deductions/credits. For precise figures, consult a tax professional.
Q2: What is the difference between a deduction and a credit?
A deduction reduces your taxable income, meaning you pay tax on a smaller amount. A credit directly reduces the amount of tax you owe, dollar for dollar. Credits are generally more valuable than deductions.
Q3: How do I know if I should itemize deductions or take the standard deduction?
You should itemize if the total of your eligible itemized deductions (like mortgage interest, state/local taxes up to $10,000, charitable donations, medical expenses above 7.5% of AGI) is greater than the standard deduction amount for your filing status. Otherwise, take the standard deduction.
Q4: Does this calculator include state income tax?
No, this calculator is designed to estimate federal income tax liability only. State income tax calculations vary significantly by state and are not included here.
Q5: What tax year does this calculator use?
This calculator uses tax parameters (brackets, standard deductions) generally applicable for the most recent completed tax year or the current tax year if updated. Always verify the tax year assumptions if critical.
Q6: Can I use this for estimated tax payments?
Yes, the estimate can help you determine potential quarterly tax payments, especially if you have significant income not subject to withholding (like self-employment or investment income). However, consult IRS guidelines or a tax professional for accuracy.
Q7: What if my income is below the standard deduction amount?
If your income is less than the standard deduction, your taxable income will likely be zero, resulting in zero federal income tax liability, assuming no other tax obligations. The calculator will reflect this.
Q8: How often should I update my tax information in the calculator?
It's advisable to use the calculator whenever your financial situation changes significantly (e.g., new job, major purchase, change in family status) or as tax laws are updated annually, to maintain an accurate understanding of your tax obligations.
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Infinity : bracket.limit; var taxableAmountInBracket = 0; if (remainingTaxableIncome 0) { taxableAmountInBracket = amountInThisBracket; var taxForBracket = taxableAmountInBracket * bracket.rate; grossTaxLiability += taxForBracket; remainingTaxableIncome -= amountInThisBracket; currentIncomePosition += amountInThisBracket; // Add row to table var row = taxDetailsBody.insertRow(); var bracketStart = (i === 0) ? 0 : taxBrackets[i-1].limit; var bracketEnd = bracket.limit === Infinity ? 'Above' : formatCurrency(bracket.limit); var bracketLabel = formatCurrency(bracketStart) + ' – ' + bracketEnd; row.insertCell(0).textContent = bracketLabel; row.insertCell(1).textContent = formatPercentage(bracket.rate); row.insertCell(2).textContent = formatCurrency(taxableAmountInBracket); row.insertCell(3).textContent = formatCurrency(taxForBracket); // Prepare chart data chartDataIncome.push({ x: currentIncomePosition, y: taxableIncome }); // Represents the total taxable income up to this point chartDataTax.push({ x: currentIncomePosition, y: grossTaxLiability }); // Represents the cumulative tax up to this point } } var estimatedTaxDue = Math.max(0, grossTaxLiability – taxCredits); // Update results display taxableIncomeOutput.textContent = formatCurrency(taxableIncome); grossTaxLiabilityOutput.textContent = formatCurrency(grossTaxLiability); netTaxAfterCreditsOutput.textContent = formatCurrency(grossTaxLiability – taxCredits); // Show net before ensuring it's not negative estimatedTaxOutput.textContent = formatCurrency(estimatedTaxDue); resultsDiv.style.display = 'block'; noResultsDiv.style.display = 'none'; // Update chart legend document.getElementById('legendIncome').innerHTML = ' Taxable Income'; document.getElementById('legendTax').innerHTML = ' Gross Tax Liability'; // Draw chart drawChart(chartDataIncome, chartDataTax); } function drawChart(incomeData, taxData) { // Clear previous chart if it exists if (chartInstance) { chartInstance.destroy(); } // Prepare data for Chart.js (simulated) var labels = []; var incomeSeries = []; var taxSeries = []; var cumulativeIncome = 0; // Determine max income point for chart x-axis var maxIncomePoint = 0; if (incomeData.length > 0) { maxIncomePoint = incomeData[incomeData.length – 1].x; } if (taxData.length > 0) { maxIncomePoint = Math.max(maxIncomePoint, taxData[taxData.length – 1].x); } // Ensure the chart shows up to the highest bracket limit if needed if (taxBrackets.length > 0 && taxBrackets[taxBrackets.length – 1].limit !== Infinity) { maxIncomePoint = Math.max(maxIncomePoint, taxBrackets[taxBrackets.length – 1].limit); } // Generate labels and series based on brackets and data points var currentX = 0; for (var i = 0; i < taxBrackets.length; i++) { var bracket = taxBrackets[i]; var nextLimit = bracket.limit === Infinity ? maxIncomePoint + 10000 : bracket.limit; // Extend slightly beyond max point if Infinity nextLimit = Math.min(nextLimit, maxIncomePoint + 10000); // Cap extension var incomeAtPoint = Math.min(taxableIncome, nextLimit); var taxAtPoint = 0; // Calculate cumulative tax up to this point var tempTaxable = taxableIncome; var tempGrossTax = 0; var tempCurrentX = 0; for(var j=0; j 0) { tempGrossTax += amountInBracket * b.rate; tempCurrentX += amountInBracket; } } taxAtPoint = tempGrossTax; labels.push(formatCurrency(currentX) + '-' + formatCurrency(nextLimit)); incomeSeries.push(incomeAtPoint); taxSeries.push(taxAtPoint); currentX = nextLimit; if (currentX >= maxIncomePoint) break; // Stop if we've covered the max income point } // Ensure the last point covers the max income if not already included if (currentX < maxIncomePoint) { var finalIncome = taxableIncome; var finalTax = 0; var tempTaxable = taxableIncome; var tempGrossTax = 0; var tempCurrentX = 0; for(var j=0; j 0) { tempGrossTax += amountInBracket * b.rate; tempCurrentX += amountInBracket; } } finalTax = tempGrossTax; labels.push('Above ' + formatCurrency(currentX)); incomeSeries.push(finalIncome); taxSeries.push(finalTax); } // Use a simple canvas drawing approach without external libraries chartCanvas.width = chartCanvas.offsetWidth; // Set canvas dimensions based on its display size chartCanvas.height = 300; // Fixed height for the chart area var ctx = chartCanvas.getContext('2d'); ctx.clearRect(0, 0, chartCanvas.width, chartCanvas.height); // Clear canvas var padding = 40; var chartAreaWidth = chartCanvas.width – 2 * padding; var chartAreaHeight = chartCanvas.height – 2 * padding; // Find max values for scaling var maxY = 0; var maxX = 0; var cumulativeIncomeVal = 0; var cumulativeTaxVal = 0; // Recalculate max values based on actual taxable income and gross tax var tempTaxableIncome = parseFloat(document.getElementById('taxableIncome').textContent.replace(/[^0-9.-]+/g,"")); var tempGrossTaxLiability = parseFloat(document.getElementById('grossTaxLiability').textContent.replace(/[^0-9.-]+/g,"")); maxX = tempTaxableIncome > 0 ? tempTaxableIncome : 10000; // Ensure minimum width maxY = tempGrossTaxLiability > 0 ? tempGrossTaxLiability : 1000; // Ensure minimum height // Add bracket limits to maxX if they exceed taxable income for(var i=0; i<taxBrackets.length; i++) { if (taxBrackets[i].limit !== Infinity) { maxX = Math.max(maxX, taxBrackets[i].limit); } } maxX = Math.max(maxX, 10000); // Ensure minimum width maxY = Math.max(maxY, 1000); // Ensure minimum height // Draw Axes ctx.strokeStyle = '#ccc'; ctx.lineWidth = 1; ctx.beginPath(); ctx.moveTo(padding, padding); ctx.lineTo(padding, chartCanvas.height – padding); // Y-axis ctx.lineTo(chartCanvas.width – padding, chartCanvas.height – padding); // X-axis ctx.stroke(); // Draw Y-axis labels and ticks ctx.fillStyle = '#666'; ctx.textAlign = 'right'; ctx.textBaseline = 'middle'; var numYTicks = 5; for (var i = 0; i <= numYTicks; i++) { var yPos = chartCanvas.height – padding – (i / numYTicks) * chartAreaHeight; var yValue = (i / numYTicks) * maxY; ctx.fillText(formatCurrency(yValue), padding – 10, yPos); ctx.beginPath(); ctx.moveTo(padding – 5, yPos); ctx.lineTo(padding, yPos); ctx.stroke(); } // Draw X-axis labels and ticks ctx.textAlign = 'center'; ctx.textBaseline = 'top'; var numXTicks = 5; var tickSpacingX = maxX / numXTicks; for (var i = 1; i maxX) xValue = maxX; // Cap at maxX ctx.fillText(formatCurrency(xValue), xPos, chartCanvas.height – padding + 10); ctx.beginPath(); ctx.moveTo(xPos, chartCanvas.height – padding); ctx.lineTo(xPos, chartCanvas.height – padding – 5); ctx.stroke(); } // Draw Income Line (Green) ctx.strokeStyle = '#28a745'; // Success color ctx.lineWidth = 2; ctx.beginPath(); var firstIncomeX = padding + (Math.min(incomeSeries[0] || 0, maxX) / maxX) * chartAreaWidth; var firstIncomeY = chartCanvas.height – padding – (Math.min(incomeSeries[0] || 0, maxY) / maxY) * chartAreaHeight; ctx.moveTo(padding, chartCanvas.height – padding); // Start from origin if (incomeSeries.length > 0) { ctx.lineTo(firstIncomeX, firstIncomeY); } // Draw steps for income line cumulativeIncomeVal = 0; for (var i = 0; i 0) { var nextX = padding + ((cumulativeIncomeVal + amountInBracket) / maxX) * chartAreaWidth; var nextY = chartCanvas.height – padding – (cumulativeIncomeVal + amountInBracket) / maxX * chartAreaHeight; // Income line is diagonal up to taxable income ctx.lineTo(nextX, nextY); cumulativeIncomeVal += amountInBracket; } if (cumulativeIncomeVal >= maxX) break; } // Ensure the line reaches the taxable income point on the x-axis var finalIncomeX = padding + (Math.min(taxableIncome, maxX) / maxX) * chartAreaWidth; var finalIncomeY = chartCanvas.height – padding – (Math.min(taxableIncome, maxX) / maxX) * chartAreaHeight; ctx.lineTo(finalIncomeX, finalIncomeY); ctx.stroke(); // Draw Tax Line (Orange/Yellow) ctx.strokeStyle = '#ffc107'; // Warning color ctx.lineWidth = 2; ctx.beginPath(); cumulativeIncomeVal = 0; cumulativeTaxVal = 0; ctx.moveTo(padding, chartCanvas.height – padding); // Start from origin for (var i = 0; i 0) { var taxForBracket = amountInBracket * bracket.rate; cumulativeTaxVal += taxForBracket; var nextX = padding + ((cumulativeIncomeVal + amountInBracket) / maxX) * chartAreaWidth; var nextY = chartCanvas.height – padding – (cumulativeTaxVal / maxY) * chartAreaHeight; ctx.lineTo(nextX, nextY); cumulativeIncomeVal += amountInBracket; } if (cumulativeIncomeVal >= maxX) break; } // Ensure the line reaches the final tax liability point on the y-axis at the taxable income x-coordinate var finalTaxX = padding + (Math.min(taxableIncome, maxX) / maxX) * chartAreaWidth; var finalTaxY = chartCanvas.height – padding – (Math.min(tempGrossTaxLiability, maxY) / maxY) * chartAreaHeight; ctx.lineTo(finalTaxX, finalTaxY); ctx.stroke(); } function resetCalculator() { annualIncomeInput.value = defaultAnnualIncome; deductionsInput.value = defaultDeductions; taxCreditsInput.value = defaultTaxCredits; // Clear errors document.getElementById('annualIncomeError').style.display = 'none'; document.getElementById('deductionsError').style.display = 'none'; document.getElementById('taxCreditsError').style.display = 'none'; // Optionally recalculate immediately calculateTax(); } function copyResults() { var resultsText = "— Income Tax Calculation Results —\n\n"; resultsText += "Key Assumptions:\n"; resultsText += "- Annual Income: " + formatCurrency(parseFloat(annualIncomeInput.value)) + "\n"; resultsText += "- Deductions: " + formatCurrency(parseFloat(deductionsInput.value)) + "\n"; resultsText += "- Tax Credits: " + formatCurrency(parseFloat(taxCreditsInput.value)) + "\n"; resultsText += "\n"; resultsText += "Estimated Income Tax Due: " + estimatedTaxOutput.textContent + "\n"; resultsText += "Taxable Income: " + taxableIncomeOutput.textContent + "\n"; resultsText += "Gross Tax Liability: " + grossTaxLiabilityOutput.textContent + "\n"; resultsText += "Net Tax After Credits: " + netTaxAfterCreditsOutput.textContent + "\n"; resultsText += "\n"; resultsText += "Tax Bracket Breakdown:\n"; var tableRows = taxDetailsBody.getElementsByTagName('tr'); for (var i = 0; i < tableRows.length; i++) { var cells = tableRows[i].getElementsByTagName('td'); if (cells.length === 4) { resultsText += "- Bracket: " + cells[0].textContent + ", Rate: " + cells[1].textContent + ", Amount: " + cells[2].textContent + ", Tax: " + cells[3].textContent + "\n"; } } // Use a temporary textarea to copy text var textArea = document.createElement("textarea"); textArea.value = resultsText; textArea.style.position = "fixed"; // Avoid scrolling to bottom of page textArea.style.left = "-9999px"; textArea.style.top = "-9999px"; document.body.appendChild(textArea); textArea.focus(); textArea.select(); try { var successful = document.execCommand('copy'); var msg = successful ? 'Results copied to clipboard!' : 'Failed to copy results.'; // Optionally show a temporary message to the user console.log(msg); } catch (err) { console.log('Unable to copy results.', err); } document.body.removeChild(textArea); } // Initialize calculator on load document.addEventListener('DOMContentLoaded', function() { // Set default values annualIncomeInput.value = defaultAnnualIncome; deductionsInput.value = defaultDeductions; taxCreditsInput.value = defaultTaxCredits; // Add event listeners for real-time updates annualIncomeInput.addEventListener('input', calculateTax); deductionsInput.addEventListener('input', calculateTax); taxCreditsInput.addEventListener('input', calculateTax); // Initial calculation calculateTax(); });

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