Online Resources for Calculating Taxes

May 7th 2016

Tax season does not have to be stressful. The online resources and tax tools give you more control over the amount of your return and make it easy to budget your tax refund before it arrives.

Using Online Tax Calculators

Several tax preparation and filing services offer simple-to-use tax calculators, including H&R Block, TurboTax and 1040.com. Most of the information needed to estimate your refund is found on your end-of-year pay stub. Enter your filing status, your age and some basic information about dependents, input your income from various sources, and answer questions about deductions and credits you may be qualified to take. The tax calculator then estimates the amount of your refund.

Benefits of Using the Withholding Calculator

The Internal Revenue Service provides a tax-withholding calculator that allows taxpayers to analyze the most beneficial withholding options for their situation. A recent pay stub and tax return provide most of the information needed to use the calculator. Based on your input, the tool returns the most effective way to file form W-4. This form is submitted by your employer and determines the amount of federal taxes withheld from your check each pay period.

Other Online Tax Resources

Increase your refund by taking advantage of online credit and deduction finders. These tools ask a series of questions to make sure common deductions are not overlooked. TurboTax offers deduction finders for dependents and education and an Affordable Health Care Act exemption check. Tax preparation checklists, frequently asked questions and additional resources are available through the Internal Revenue Service, TurboTax and 1040.com.

Conclusion

Whether you're budgeting for home improvements or planning a family vacation, it is important to know how much to expect from your tax refund before you file your taxes. Online tax calculators make it easy to estimate how much you'll get back. Moreover, additional resources are available to help you maximize your refund.

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