Estimate Tax Return

It can be very difficult to estimate a tax return before actually sitting down to do the paperwork, but this can be very important in the event that a taxpayer actually owes money. After all, it only makes sense to file as soon as possible for those who will get money back. Those who will have to pay should probably wait until closer to the tax filing deadline. This will allow them to save up the money they owe.

Items needed before taxpayers can estimate tax return

Several items are needed before an estimate can be determined on a tax return. The only real difference between actually doing taxes and trying to figure out an estimate is that the taxpayer is dealing with estimates instead of exact numbers from the documents that will be used to file, but it’s not a bad idea to have these documents in hand when sitting down to actually estimate a refund. The documents include the last paystub of the year (or the W2), bank statements, IRA statements, and any other financial statements that will factor into the tax return.

Calculators to estimate tax return

The next step to figuring out how much refund the taxpayer will get back is finding a reliable tax calculator to use. After all, taxes can be a dizzying maze of confusion, so it’s best to use a tax calculator from a reputable source. There is also sufficient benefit from using several different tax calculators to estimate tax refund. This will ensure that the estimate is the most accurate.

One thing to keep in mind when choosing a tax calculator to estimate a return is that not all of them have been approved by the IRS. This basically means that the IRS has not checked the company’s methods for calculating tax.

Suggested calculators useful to a tax return

The best place to start estimating a tax refund is at the source, and the IRS has its own federal tax estimator. The tax calculator can be found at the IRS website.

Another tax calculator tool that works very well is IRS efile. This tool is not provided by the IRS, but it has been approved by the agency. Many people who prepare their own taxes choose to use efile every year. The IRS efile tax calculator can be found at the IRS efile website.

It’s also not a bad idea to use a couple of third party tax calculators to make sure the numbers are accurate. TurboTax is a well-respected third-party tax website that many people use to file their taxes. The TurboTax federal tax calculator can be found on the TurboTax website.

Another third party site that is well-respected is H&R Block. H&R Block provides either online self-preparation of taxes and tax professionals who take care of the entire process. The H&R Block tax calculator can be found at the H&R Block website.