How to calculate tax return
How to Estimate My Tax Refund
There are just a few steps you need to take to estimate your tax refund. First you will need to provide some basic information, then enter it into a calculator, and then you will receive of an estimate of the amount of your tax return.
The first thing you will need is your filing status and whether or not you file as head of household. Then you will need your age and the age of your spouse if you are filing together. This will get you through the first step.
Now you will begin entering your approximate income. You will start with your income which would include the earned income you had and how much federal and state taxes were withheld. If you received any unemployment income this is also where you would enter it.
Next you will need to enter any other income. This would be items such as:
- Interest or Dividends
- Capital Gains or Losses
- IRA or Pension Distributions
- Social Security Benefits
- Misc Income
You will then be asked to enter any income that your spouse had as well as business income from either one or both of you if you are filing jointly.
You will then be prompted to answer a series of questions that will offer you as many deductions and credits as possible. This is the best part because you will see your refund increase as you make your way through this section.
Some of the more important questions you will be asked will be about any dependents you have if any. Their ages, if they live with you, and if you pay for childcare for them while you are at work. There will an opportunity to enter if you were a student, owned a home, or made any other tax payments.
Once you have completed the information in the calculator then you will hit continue and you will receive an estimate of your tax refund along with a results screen that will breakdown all the information that you entered.Source: www.howtoestimatetaxrefund.com