We are retired and make quarterly estimated tax payments.
With the tax changes signed into law this month, I have been looking for a 2025 Tax Estimator Calculator that includes those changes to help us stay on top of how much we need to pay each quarter.
The first one I have found that has those changes included is from NerdWallet. Here is a link to it: Federal Income Tax Calculator 2025 - NerdWallet
I hope others find this link useful.
Hello @martha.rudkin, I took at look at the resource you shared, thank you.
Unfortunately, it signed me up for their newsletter or something that I didn’t realize was happening. I felt uncomfortable about their data collection so
I mocked up our own version as a page on the Tiller website. Thinking how this might be a spreadsheet template to help you prepare for the taxes. Any thoughts on what you would want on the template?
-Alice
Tiller Evangelist
Thanks for starting the Tiller version of a tax estimator.
It’s strange that you were signed up for a newsletter trying to use the link. That didn’t happen to me. I don’t have a NerdWallet account and I didn’t have to create one in order to use their calculator. I’m not receiving email from them either after using it.
My main goal in starting to look for this information was to see how the increases in the standard deduction and the additional senior deduction affected our estimated tax bill. The quick basics that I liked about the NerdWallet version were to be able to enter ages for both spouses and have the standard deduction adjust to the new July 2025 numbers. The “Other Deductions” box on their calculator is also useful.
Again, thank you for the work that you started here.
Isn’t the simple approach here to just use the safe harbor exemption? As long as you pay the taxes you owed last year, you won’t be assessed a penalty.
While simple, your estimator (and others) will over state the tax owed by most seniors. In addition to the new $6,000 deduction just enacted, some social security payments are exempt from taxation. Adding them to your calculator would be a bit complicated because, in addition to age, both phase out as income increases.
This is very true! It is a simplified approach. Definitely not intending to be a substitute for an accountant or financial advisor.
Thanks for the additional comments everyone.
Regarding Safe Harbor - our taxable income varies depending on Roth conversions, so paying last year’s tax bill is not always the easy answer for this year’s taxes.
Estimating taxes is always a guessing game, especially when the rules change mid-year.
High - I have a spreadsheet solution that is specific to my situation that worked quite well in 2024. Even in a simplified tax calculator, I would like to see a capital gains break out for those of us with an investment portfolio as a significant part of our income stream. To keep it simple, I just assume that all capital gains are taxed at the long term rate of 15%.
It seems the Tiller version is still using the 2024 standard deduction values instead of the 2025 values.
Regarding taxes for Roth conversions, you aren’t required to pay those taxes until you actually make the conversion. Thus, your quarterly estimates can exclude the expected tax on those. When you actually withdraw the funds from your 401(k)/IRA you can pay the taxes then.
Thank you, I’ll double check it.
@ChrisMildebrandt I downloaded the pages from the IRS to update it. You were correct, the page I had before had the old deduction. Does this match the information you know? I’m still tweaking the calculator.
For the 2025 tax year, the standard deduction amounts have been increased for all filers. These amounts represent the income you can exclude from taxes before the marginal tax rates apply.
Here are the 2025 standard deduction amounts based on filing status:
• Married filing jointly or Qualifying surviving spouse: $30,000.
• Head of household: $22,500.
• Single or Married filing separately: $15,000.
Special Rules for Standard Deduction:
• Dependents: If you can be claimed as a dependent on another person’s 2025 tax return, your standard deduction is the greater of $1,350 or your earned income plus $450 (up to the standard deduction amount).
• Age 65 or Older or Blind: Your standard deduction can be increased if you are 65 or older or blind at the end of 2025.
â—¦ For an unmarried individual (single or head of household) who is 65 or older or blind, the standard deduction is increased by **$2,000**.
â—¦ If an unmarried individual is both 65 or older and blind, the increase is **$4,000**.
â—¦ For a married individual (filing jointly or separately) or a qualifying surviving spouse who is 65 or older or blind, the increase is **$1,600**.
â—¦ If a married individual is both 65 or older and blind, the increase is **$3,200**.
â—¦ If both spouses filing jointly are 65 or older, the increase is $3,200. If both spouses filing jointly are 65 or older and blind, the increase is $6,400. Note that these amounts ($3,200 and $6,400) apply only if married filing jointly, not if married filing separately.
• “Bonus” Deduction for Older Adults (2025-2028): A new “bonus” deduction is available for those age 65 and older.
â—¦ For 2025, the total standard plus bonus deduction for those age 65 and older is **$21,750 for a single person** and **$43,500 for a married couple filing a joint return**.
â—¦ However, income thresholds apply. Single filers with Modified Adjusted Gross Income (MAGI) below $75,000, or married couples with MAGI below $150,000, can claim the full bonus deduction. It gradually phases out for incomes above these thresholds. For single individuals, the bonus deduction is $6,000 if MAGI is less than $75,000, and it is reduced by 6% for every dollar over $75,000, becoming $0 if MAGI is greater than $175,000. For married couples filing jointly (both 65+), the bonus deduction is $12,000 if MAGI is less than $150,000, reduced by 6% for every dollar over that threshold, and is $0 if MAGI is greater than $250,000.
• Zero Standard Deduction: Your standard deduction is zero if your spouse itemizes on a separate return, or if you were a dual-status alien and do not elect to be taxed as a resident alien for 2025. It is also zero if you file a return for a period of less than 12 months due to a change in your accounting period.
• No Limitation on Itemized Deductions: There is no limitation on itemized deductions for tax year 2025, a provision that has been in effect since the Tax Cuts and Jobs Act of 2017.
You can use Worksheet 2-4, “Standard Deduction Worksheet,” to figure your standard deduction when preparing your estimated taxes.
That info looks like what I understand as well. Thanks!
I looked at the “Federal Income Tax Calculator 2025” from Nerdwallet, and I don’t think it takes into account the existing taxes on Social Security. That is, our income is greater than 44K and hence, we only pay taxes on 85% of our SS Income. This Calculator is lacking in that respect.