How to Calculate Tax Refunds

Taxes are something that every Amercian person that is an employee pays every year.  A percentage is deducted from every paycheck.  If there is an overage at the end of the year, it is refunded. It is helpful to learn how to calculate your tax refund to ensure you recieve the proper amount or to budget accordingly. 

1. Log onto the IRS.gov website. Find and click on the “Tax-withholding” calculator. Click through every section of the calculator and answer the given questions.


2. Click on the filing status that applies to you. Select yes or no to the dependent status. A dependent can be under the age of 19. Another dependent eligible status is a student full-time for over four months of the year. The student must live with parents for over half of the year and be under the age of 24. Other filing status selections would be married or single.


3. Click the choice for the amount of jobs that have been worked during the tax year. Answer the question regarding legal blindness. The other question that will need to be answered is if person is the age 65 or not.


4. Click on the next selections, which will be to answer what the expected income will be. There will be a selection to provide how much wages have been withheld from the paychecks received. Also provide the information regarding how often a paycheck is received. There will be a selection to choose any extra income received. This is items such as stocks, self-employment, social security or interest. These things all must be taken into consideration when answering questions.


5. Click on the choices regarding state tax spending, mortgage interest, charitable donations, real estate taxes, childcare expenditures, student loan interest, tuition and job expenses.


6. Click through to apply all of the choices and the calculator will give the results of an estimated refund. If there is the possibility of a refund, the site will give suggestions of what to expect and how to prevent having to pay in instead of receiving a refund.