No one escapes the stress that comes along with tax season and fessing up to the IRS. Most of us would like to know if we will be giving even more money to the IRS or getting a nice little return. This is a lot more feasible and a great deal easier to do then you were probably expecting.
This handy tool by TurboTax will let you know whether you are getting a refund or whether you will be paying money out. Even if you are not going to use TurboTax to process your return, anyone is welcome to use this tool for free!
How to use the calculator:
The calculator is extremely user friendly, offering a list of settings and inputs on the left side of the screen. You might want to browse through the listings to get an idea of the many options and cool things you can do.
While running your totals, there is a meter on the right side that is constantly calculating the information you put in. This side of the screen is ongoing and calculating your taxes and when the meter is done, will show you exactly how much you will receive as a refund or what you will be paying to Uncle Sam.
Making adjustments ahead of time:
One excellent benefit is seeing your tax situation change as you make different adjustments. What if you are planning on filing a standard deduction but you have your receipts and would like to know if itemized might be a better option.
You could add up your receipts and then play around with using standard deduction or itemized deduction to see which will work out best.
Imagine you had already filled out your tax returns and then discovered you could have received a better return if you had gone with itemized instead of standard. Well you are now stuck with doing your taxes completely over!
Before using the calculator:
You are going to need pertinent information before using the calculator. Your filing status information and the number of children in your household to start with. Then you will need your income, retirement information, payments elsewhere, or business income and if you have any charitable deductions.
If you do not have all the information, the calculator can still give you some ideas as to the direction your taxes are heading.
The tax refund calculator is a great tool to give a either a full heads up or even partial heads up on your tax refund. It's absolutely free to use, so why not take advantage of it!