For many taxpayers the only good things about income tax regime is compulsory savings on account of refunds.
Every year tax is withheld by your employer and deposited with IRS on your behalf, details of which are provided in your form W-2.
At the year end when you file your tax return you can claim the refund on account of any excess tax deposited with authorities.
As many of us have already planned what they would do with this money well before they would get it they become kind of anxious to know how much will they get as their tax refunds.
Further let us discuss means through which one can estimate his/her income tax refunds for the year.
Before you file your year end tax returns it becomes important for you have an estimation of how much refund is due from tax authorities so that you can plan your tax saving expenses accordingly.
Fortunately technology has come to our rescue here as well and offers online estimators and software which can help you estimate refunds.
The authentic figure of your tax return can only be known when you file your tax return but as many of us are an impatient lot, we can get an estimate of this figure using the new technological tools and use this information to best of our advantage.
Many internet based websites are providing tax refund estimator tools which can provide us estimate of our yearend tax.
While using this tool you need to provide some basic information related to your income and status in the system and estimate of tax refund is prepared based on it.
The information which one must keep handy while working with the estimator tool is related to income amounts, age, marital status, home related expenses, donations, retirement and contributions, withholdings, etc.
There are number of website which provides such tools.
You can just search in Google to look for websites offering tax refund estimator tool.
It is also advisable to check for the estimates using 3-4 different websites.
As all the websites used different software to estimate this amount you can average out the results obtained from different websites to arrive at a figure which is bound to be closer to actual refund value.
One you have an estimate of this figure with you, you can plan how you would like to spend this amount.
Also this will act as a good exercise into build-up of the actual tax season.
Every year tax is withheld by your employer and deposited with IRS on your behalf, details of which are provided in your form W-2.
At the year end when you file your tax return you can claim the refund on account of any excess tax deposited with authorities.
As many of us have already planned what they would do with this money well before they would get it they become kind of anxious to know how much will they get as their tax refunds.
Further let us discuss means through which one can estimate his/her income tax refunds for the year.
Before you file your year end tax returns it becomes important for you have an estimation of how much refund is due from tax authorities so that you can plan your tax saving expenses accordingly.
Fortunately technology has come to our rescue here as well and offers online estimators and software which can help you estimate refunds.
The authentic figure of your tax return can only be known when you file your tax return but as many of us are an impatient lot, we can get an estimate of this figure using the new technological tools and use this information to best of our advantage.
Many internet based websites are providing tax refund estimator tools which can provide us estimate of our yearend tax.
While using this tool you need to provide some basic information related to your income and status in the system and estimate of tax refund is prepared based on it.
The information which one must keep handy while working with the estimator tool is related to income amounts, age, marital status, home related expenses, donations, retirement and contributions, withholdings, etc.
There are number of website which provides such tools.
You can just search in Google to look for websites offering tax refund estimator tool.
It is also advisable to check for the estimates using 3-4 different websites.
As all the websites used different software to estimate this amount you can average out the results obtained from different websites to arrive at a figure which is bound to be closer to actual refund value.
One you have an estimate of this figure with you, you can plan how you would like to spend this amount.
Also this will act as a good exercise into build-up of the actual tax season.