What Is an Online Income Tax Calculator?


Quick Answer

An online income tax calculator is a tool that helps taxpayers estimate their income tax refund or liability, says efile.com. The calculator is not meant to be a federal tax preparation tool. While the estimations are useful, they are not guaranteed to be accurate, notes 1040.com

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Full Answer

To use the income tax calculator, users input information such as wages, number of dependents, tax deductions and tax credits, as stated by efile.com. According to a 2013 report by Forbes, the average tax refund is about $3,000, and 90 percent of tax returns are filed online. The Internal Revenue Service collects approximately 140 million tax returns each year.

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