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How do I Use an Income Tax Refund Estimator?

Dana Hinders
Dana Hinders
Dana Hinders
Dana Hinders

If you are anxious to file your return, an income tax refund estimator can be a useful tool. These online calculators, while not intended as a substitute for professional tax preparation assistance, can help you get a better idea of what to expect when you file your return. This can be particularly helpful if you're planning to use your refund to pay off credit card debt, make large home improvements, or save towards a family vacation.

You don't have to worry about identity theft or online security when using an income tax refund estimator or other tax preparation assistance tools. These online services do not ask for your name, birth date, Social Security number, or other identifying personal information. Calculators for estimating tax refunds do not save or store information; your data will be erased once you leave the Web site.

A W-2 wage and tax statement states how much an employee was paid and how much in taxes was withheld. If too much was withheld, it will be refunded.
A W-2 wage and tax statement states how much an employee was paid and how much in taxes was withheld. If too much was withheld, it will be refunded.

To make an income tax refund estimator as accurate as possible, read all of the directions before you begin. Basic information such as the number of dependents and your filing status can be obtained from your previous year's return. Recent pay stubs can help you enter wage information for the year. It's fine to enter approximate amounts if you are missing some of your financial data, but keep in mind that this will decrease the accuracy of the your refund estimate.

Income tax refund estimators are useful to project the amount of a refund to expect when the actual tax return is filed.
Income tax refund estimators are useful to project the amount of a refund to expect when the actual tax return is filed.

An income tax refund estimator will work best if your return is fairly simple to prepare, since variables such as self-employment deductions or income subject to capital gains tax make filing a bit more difficult. In fact, the vast majority of online calculators do come with an official disclaimer stating they make no claims as to the accuracy of the information provided and you must agree to use the calculator at your own risk. You may even find that you get slightly different estimates of your refund when you use more than one online calculator.

Recent pay stubs listing wages and amount of tax withheld are useful when using an income tax refund estimator.
Recent pay stubs listing wages and amount of tax withheld are useful when using an income tax refund estimator.

While income tax refund estimators are the most popular form of online tax preparation assistance, there are a number of other resources available as well. There are online calculators available to help you figure education tax benefits and credits for dependent care expenses. Most large tax preparation services also offer checklists to help you determine if you are taking all of the deductions you may be entitled to receive, such as special deductions related to the expense of searching for a new job or buying a new home.

Dana Hinders
Dana Hinders

Dana holds a B.A. in journalism and mass communication from the University of Iowa. She has loved being part of the WiseGEEK team ever since discovering the joys of freelance writing after her son was born. Dana also hones her writing skills by contributing articles to various blogs, as well as creating sales copy and content for e-courses.

Learn more...
Dana Hinders
Dana Hinders

Dana holds a B.A. in journalism and mass communication from the University of Iowa. She has loved being part of the WiseGEEK team ever since discovering the joys of freelance writing after her son was born. Dana also hones her writing skills by contributing articles to various blogs, as well as creating sales copy and content for e-courses.

Learn more...

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    • A W-2 wage and tax statement states how much an employee was paid and how much in taxes was withheld. If too much was withheld, it will be refunded.
      By: Mariusz Blach
      A W-2 wage and tax statement states how much an employee was paid and how much in taxes was withheld. If too much was withheld, it will be refunded.
    • Income tax refund estimators are useful to project the amount of a refund to expect when the actual tax return is filed.
      By: cphoto
      Income tax refund estimators are useful to project the amount of a refund to expect when the actual tax return is filed.
    • Recent pay stubs listing wages and amount of tax withheld are useful when using an income tax refund estimator.
      By: bradcalkins
      Recent pay stubs listing wages and amount of tax withheld are useful when using an income tax refund estimator.
    • Many online tax preparation services include an easy-to-use tax refund estimator.
      By: steheap
      Many online tax preparation services include an easy-to-use tax refund estimator.