Estimate Your Tax Refund For Free
Tax debt can sneak up on you when your not looking, so if you estimate your tax refund several times during the year it's much easier to make wise financial decisions in order to meet those IRS tax liabilities when needed.
When you estimate tax refund calculations, your keeping yourself informed on what you need for balanced income tax payments to come out near even at year end. Nobody likes a surprise tax bill, and this is the way to avoid them.
2016 - 2017 Tax Refund Estimator
How To Use Our Tax Refund Estimator Tool
With our calculation tool above you can estimate tax refund figures for your federal taxed by selecting each one individually by providing your income and tax year being filed. The three federal taxing entities include:
- Federal Income Tax
- Social Security Tax
- Medicare Tax
Once you have calculated each one you can add them together for total federal taxes owed, or the federal tax refund amount you will be receiving.
Keep in mind that when you estimate tax refund amounts it is important to use net income figures in order to account for adjustments due to tax deductions like IRA contributions and business expenses.
Should you find that you are receiving an awful large refund or paying in a large sum of additional taxes owed, you should make an adjustment to your paycheck withholding or quarterly payments in order to come out closer to even at year end.
Use our tax estimator often for better financial management practices!
It's also wise to use our tax refund estimator several times a year to insure you are on track to meet the federal tax obligations you will encounter when that time comes.
Your tax amount is largely based on the IRS tax brackets and tax rates that are used to determine the amount of taxes you will owe Uncle Sam when the tax filing deadline rolls around.
Tax rates are applied to each portion of income falling within each of the tax brackets that you climb into as your income increases. So when you estimate your taxes, the reality is that different portions of your income are taxed at different rates. In the end, each tax amount from each tax bracket is added together to give you an estimate of your total taxes owed.
Many factors go into calculating your taxes accurately, and the end result is only as accurate as the data you put in to the calculator. The end result must also be adjusted with any tax deductions you may have if you used gross income, instead of net income.
Your net income is the taxable amount of income you have after all tax deductions and tax break are already figured in to determine your overall taxable income.
In the end, taking advantage of tax breaks can help you save some serious cash on your tax bill this year.