A Step-by-Step Guide to Estimating Your Tax Return

Many people make plans for the funds they expect to get back during the tax season. Because of this, several people are curious about how much money they should anticipate in order to strategize future endeavors or simply to put their inquiring mind at ease. Whether you are a planner or just plain curious, there are ways you can make a rough calculation of what you should expect in your tax return.

On the main IRS website there is a handy tool called the Tax Refund Estimator. This has been proven to be the best way to explore how much money you will be getting back. The primary information that you will need in order to calculate the amount is:

o   Tax Filing Status

o   Number of Dependents

o   IRA Contributions

o   Itemized Deductions

o   Total Number of Personal Exemptions

o   Dollar Amount of Federal Taxes Withheld 

Of course, you could always try your hand at doing the calculations yourself, but you will still need the above information in order to do that.

While most people utilize this tool to see the amount of money they will be getting back from the IRS, it works just as well to see how much money you will have to pay them.

Christine Davis CPA at large

Author's Note

Many people make plans for the funds they expect to get back during the tax season.