Q:

What is a tax refund estimator?

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Quick Answer

A tax refund estimator is a tool that roughly calculates how much of a refund taxpayers can receive for a corresponding year. Drake Enterprises' tax software business portal, 1040.com, features an online tax refund estimator.

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Full Answer

In the United States, employees and business entities that filed income tax returns may be eligible for a tax refund from the Internal Revenue Service, which is the agency mandated to impose and collect taxes. Individuals with access to the Internet can determine the approximate refund amount they can get for a particular year by using 1040.com's free online federal tax refund estimator.

To use 1040.com's tax estimator tool, users are required to provide certain information including the taxpayer's personal details, income-related figures, income adjustments, deductions and credit history. Users must indicate their filing status such as whether they are single, married, married but separated or the head of household. Individuals must also specify their age, whether they are someone's dependent, their number of dependents younger than 17 years old and their number of dependents between ages 17 and 24 who are doing full-time schoolwork.

If applicable, users can also indicate other sources of revenue such as long-term and short-term capital gains and losses, Social Security benefits and unemployment compensation. Some deductibles include mortgage interests, charity donations, real estate taxes and student loan interests.

An online tax refund estimator is also available at TaxBrain.com. It should be noted that the use of this tool is not officially sanctioned by the U.S. government for any federal purpose, according to TaxBrain.com.

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