K.I.S. FairTax® CALCULATOR
The definition of adult includes a common law partner, significant other or possibly another adult whether related by blood or not. The test becomes, do they contribute to family expenses? If so, one of the adults should be designated to receive the family prebate payment. If an adult keeps his or her finances separate, they may chose to receive a separate prebate check each month. Families will determine this during an annual election period.
Enter the total of natural children, adopted children, custodial children, children under legal guardianship and children living away from home (such as college students) when the family contributes more than 50% of the annual expenses. Likewise, an adult of lineal relation for whom the family contributes of 50% of living expenses, may also be considered a dependent (child).
If you happen to know your gross income, type in the correct amount. Otherwise use the figure from last year's 1040 form, line 22.This form will not calculate incomes in excess of one million dollars.
Income Tax Calculation
Your Income Tax Effective Rate (Total federal taxes divided by gross income).
FAIRtax cost divided by gross income.
What did you pay (1040, line 63)
This works for the self employed.
If you have an employeer, please add back in your payroll taxes.
What you would pay under the FAIRtax (FAIRtax rate calculated above times Gross)
Income Tax Cost minus FAIRtax cost