FREE NEWSLETTER
Go to main Forum page »
I recently came across the tax estimation tools page on the Bogleheads Wiki. I found the information and links useful and think it is likely that other HumbleDollar readers will also.
It was interesting to me to learn to that the AARP free tax calculator that I often use appears to be a licensed version of the current Dinkytown program referenced in the Wiki article with the Dinkytown version being updated more frequently and thus the Boglehead’s recommend over the licensed versions. As of yesterday the software has not yet been updated for the 2025 OBBBA tax law changes. I have read that may be coming at the end of September. You can also use the tax estimator at the developer’s website for free. Lot’s of other useful free financial calculators also at Dinkytown.
For those who like excel spreadsheets there is also one to download from a different developer that has been updated for OBBBA already. I have downloaded but I have not yet dug into the program that but it appears to be comprehensive.
I hope you find this to be a useful reference.
Best, Bill
I tried the Dinkytown app and it seems insufficient to do my estimates. I have been deep into 2025 Excel1040. It seems to have many features that I was looking for but it is missing at least one form (8995-A) that I need. I tried to email the author but the emails bounce back as undeliverable. Thanks for sharing the link but my quest continues.
The Qualified Business Income Deduction (form 8995-A or 8995) is a great example of tax code complexity that was stacked on top of already existing complexity.
For me, unless my current year taxable income is significantly less than my prior year taxable income, I prefer to base my current year withholding and/or estimated tax payments on the available prior year tax amount safe harbor amount.
I expect I will be overpaid in 2025 because my initial planning did not include the new senior deduction that became law with the signing of the OBBBA on July 4, 2025. Is congress done with tax code changes for 2025? I do not know that answer any more than I know where stock prices will be at the end of the year.
I also use the tax planning tools to try to hit the taxable income level I want to hit to avoid wasting lower income tax brackets. With my current income level and type of income either of the referenced tax estimation tools currently work well for my tax planning and estimated tax payments purposes. You are correct in my thinking to seek the best tools if your taxes are currently complex and that amount is material to your decision making.
Good luck on your 2025 tax planning.
Best, Bill
Until last year I never bothered to do tax calculations, but since we retired our income is nowhere near the top of the 12%, nor the 10% brackets. However I did start doing manual calculations when I started performing Roth conversions last year to make sure we hit the top of the 12% bracket. I was a few hundred off. Did the calculations last month with research and the calculator on my phone, then doubled checked my math and research with my nephew who is an accountant, and again was spot on. I like the mental challenge of doing the research and calculations myself. But like Reagan dealing with Gorbachev, I trust (myself), but verify.
David, similar approach here for Roth conversions but I use an Excel spreadsheet because of some minimal self-employment income and tax calculations and my “threshold” is max income without losing the OBBB $12K senior deduction. It bleeds a bit over into the 22% bracket but not much. No nephew to check my work but I’m a reformed accountant from many years ago so I have only myself to blame if I screw it up. :0
Thanks for the information on resources. I like to use the prior year TurboTax (TT) software to estimate my upcoming taxes and plan for capital gains, charitable contributions, etc. I enjoy spreadsheets and will also download to compare to my TT planning. And for those who like TT, I highly recommend buying the software vs online version. I play around with different scenarios and can see impacts in the Forms after the Step-by-Step.
Thank you all for your helpful articles. I’ve been reading (and recommending to others) the Humble Dollar blog and find lots of value. This is my first post. Thanks all, S
Bill, thanks for posting the link for the tools – the Excel1040 spreadsheet is exactly what I was looking for. As you mentioned, it includes the 2025 OBBBA changes. I like that I can enter each of our income sources and the spreadsheet will add up the data and put it on the 1040. Makes it a lot easier to update later when there are changes.
I completed the Excel1040 spreadsheet for our estimated 2025 taxes and it looks good. I still have to double-check if I entered all our income, but so far all the calculations are as expected, including the OBBBA changes.
Thanks for sharing this!
I just used the “what-if” form in last years TurboTax windows edition to do some “what-if”ing around ACA credits, capital gains, etc. Seems to work well and I trust it way more than any spreadsheet I would ever create. After letting it update and checking the “use 2025 rules in this column” box it knew about the $6k senior deduction and got it right based on my age (64) and my wife’s(66). You may have to already have or buy the 2024 windows edition.
Would recommend.
Thanks for this Bill. I for one wasn’t aware of Dinkytown. I recognize the calculator I normally use there; now I know where it comes from! Interesting and not surprising that theirs might be updated sooner than licensed versions. Unless I’m missing something though, it appears to me that it’s in the open, not requiring one to sign into an account. Since you mention it hasn’t yet been updated, I didn’t look closely enough to see if it can be started and saved.
As we use the standard deduction my work around on the AARP tax calculator is to put our new MFJ 2025 standard deduction (31,500) + the bonus deduction (3,200) + two over age 65 senior deduction (12,000) = 46,700 in the interest line to make the system think I am itemizing.
Hopefully, we will have the finalized version to allow us to plan for 2025 soon. I have some part time wages from earlier in 2025 so I have a lot of flexibility for 2025 as I can use money from my 2026 RMD to contribute to either our 2025 traditional or Roth IRA early in 2026.
Thanks for that tip. I’d like to sell some of a fund but already did a Roth conversion when markets were down earlier in the year so I don’t have a lot of flexibility left to realize the gains from doing so. I’ll likely wait til late in the year anyway when there are fewer estimates to make but would still like to see a tentative tax picture sooner rather than later. If I run out of patience waiting for the updated calc I may try this workaround.
Great tip on the work around. I did something similar when the bill was first signed
Thank you, Bill!
Bill, thank you so much keeping us abreast of tax information. You provide a great service.
Bill, thanks very much for this information. I look forward to checking out these tools. I always appreciate your contributions to the site.