The best calculators to estimate your tax refund revealed
AMERICANS will soon be able to file their tax returns – and some might be curious about how much they could get back in advance.
In 2021, Americans received an average of $2,775 in tax refunds, an increase of 11% from the previous year, according to the Internal Revenue Service (IRS).
The amount you receive on your tax return will depend on a few factors, including your income and deductions.
While it’s unclear how much Americans will receive in 2022, the IRS will begin accepting tax returns on January 24.
And fortunately, there are several online tax refund calculators.
But keep in mind that you may want to have your W-2 form in front of you, as it will display important information about your taxes and income, which will help you get the best estimate.
We list the best calculators below.
H&R Block is the one who will estimate your refund amount.
It will also tell you how much you will owe the IRS, assuming you underpaid taxes for 2021.
You will need to enter your marital status, if you are ahead of household, income, withholdings, among other information.
The more information you provide, the more accurate your estimated return will be.
H&R Block also lets you save and finish for later if you don’t have time.
TurboTax’s calculator will ask you for similar information – but its tool is a bit broader.
For example, TurboTax will ask you to enter more information about dependents, including their age and whether or not they are students.
It will also ask you how much you paid in tuition and student loan interest for 2021.
Another that will estimate your return is TaxAct.
This will ask you for basic information, income, deductions and credits you can claim.
Additionally, TaxAct has calculators for self-employment, W4, and tax brackets.
How to Calculate Taxes Before Obtaining W2 Forms
Although the most accurate way to get your estimate is to have the exact number, some websites calculate how much you paid in taxes.
One of them is the fintech SmartAsset.
All you have to do is enter your income for the year, location, and state of filing, and SmartAsset will estimate how much you paid in taxes.
For example, if you live in New York with a family income of $50,000, it is estimated that you pay $4,295 in federal taxes and $2,272 in state taxes.
Once you’ve gotten an estimate, you can put it into one of the best calculators we’ve listed.
Of course, the amount you pay in taxes will depend on the amount withheld from each paycheck.
When you indicate “0” on your tax form, you are indicating that you want the higher amount deducted from your salary.
We reveal five steps you can take to avoid a late refund this tax season.
We also reveal some key dates to watch during this tax season.
Plus, here’s why your tax return might be smaller this year when you file.