Tax Refund Calculator - Calculate Your Tax Refund before Filing
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Calculating Your Tax Refund
Once you get your W2 from your employer. Like most people you are probably eager to get a quick estimate of the Tax Refund. It would take several hours to calculate your tax refund if you were to do it with pen and paper.
However for a quick preview you can use a Tax Refund Calculator to figure out whether you are going to actually get a big fat refund from the IRS Or if you will end up owing money to the IRS. If you knew in advance, you could plan for it.
Tax Refund Calculator
Is there a quick way to do a quick calculation of your tax refund situation in less than 5 minutes ?
Yes. There is.
Its called a Tax Refund Calculator. Its a powerful little tool that you can use to get an immediate estimate of your taxes.
Not only can you use it to calculate your tax refund, but you can also use it to estimate next years taxes, so you can plan on increasing your W4 exemptions and increase or decrease your take home pay.
Punch in some easy numbers and facts like your income, dependents and other basic info, hit the calculate button, and presto, you have an estimate of your tax refund. No personal information is required.
Try the Tax Refund Calculator for Free!
Last day to File Taxes for 2011 - April 18th 2011
Last day to file taxes for Tax year 2011 is April 17th 2012. You get two extra days this year !
Good luck
Social Security Benefits - What determines your eligibility
Most people get their paycheck only after social security taxes are witheld from it. This money is taken at source from your gross income. So after working for several years, its likely you have paid in a ton of money into social security. And when you reach your golden years you are looking forward to reap the benefits of your hard work.
If you are born before 1938, your full benefits from social security will only be available at age 65. If you decide to retire early, you may be able to get money out of social security but the benefit amount will be lower. With higher life expectancies, it is expected that the age at which full benefits become available will rise in the future. Most people spending more and more years in retirement means, social security is paying out more.
Retiring at full retirement age would mean additional benefits and credits. In social security terminology, full retirement is the age at which you will receive the full benefits.
So what does it cost you if you retire early ?
If you retire early before age 65, the benefit amount is reduced approximately .5 percent for every month that you are below 65. Hence its far more beneficial to retire closer to 65 than before it. Retiring at 65 also means that you get the credits that are due to you.
Working after retirement
Its possible and a lot of people actually want to continue working after retirement. But remember if you do work after retirement, your benefits will reduce by the amount you would earn in social security benefits if you earn over certain limits. The social security administration changes these limits annually.
What happens if you die ?
In the event of your death, your family members will be able to collect social security benefits. Your wife/ husband could get around half of the benefit amount that you would have received if they are over 60 or disabled and taking care of a child under 16. Similarly your surviving children could get upto 3/4 of your benefits - but the children have to be unmarried under 18 or children studying in schools under 19 or children who are disabled below 22 years.
What is needed to prove your eligibility for SS Benefits
To receive social security benefits you will have to prove your eligibility. This can be established by birth certificates or your work and income statements (eg. the W2 you receive from your employer).
Preview your tax refund without actually doing your return. Use this tax estimator (which also has life event changes). Retirement is certainly a life event changer!
© Tax-Easy.com
Boutique Tax Sites With Unique Services
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If you are like most people - on or before April 15th you would head out to a neighborhood tax ’store’ like HR Block or Liberty Tax or Jackson Hewitt to prepare your taxes. If you have complex situation you would probably head out to your trusted CPA or Enrolled Agent to get your taxes done. In general a typical tax filer will fall into these categories :
The Frazzled Tax Filer
This person goes to a trusted tax professional who has done his/her tax returns for years and years and probably know their children (or grandchildren’s) names. And they really only ‘trust’ this one and only person to do their tax return again this year just like last year and the year before that. They really haven’t shopped around for tax preparation services in a while, never found the need for it and probably never will. They are content with the service they get for the price they pay and haven’t researched other alternatives.
The Self Preparer
People who prepare their taxes on their own - either using pen and paper or use tax software or use an online tax preparation company generally fall into two sub-categories :
Easy Tax Situation
Someone who have an easy tax situation. This category could include people who are single or do not own a home or have no children or dependents. Students and people just starting out in their careers could probably just do their taxes in a couple of hours using an online tax service for instance.
Price Conscious Tax Filer
The second category of people who prepare and file their taxes on their own are college educated professionals and/or individuals who are organized and savvy with their finances - they are familiar with computers, know a good bit of tax terminology, have a 401K or IRA and use online services frequently. They are also price conscious customers who really mind paying a big fee to a CPA or tax preparation company when they know its only a few hours of work to prepare their tax return which could potentially save them hundreds of dollars.
Where Do The Self Preparers Go
The Big Online Tax Sites
Two of the biggest online tax sites are Turbo Tax and HR Block. These 2 companies together control than 70% of the online tax preparation market. Big does not necessarily mean bad. Both have excellent tools and software and tons of online help. A real human is only a click or a phone call away. Both Turbo Tax and HRBlock offer a manual review (using a real tax professional) for a few bucks more. Even with these service added, they will cost you less than going to a tax professional.
But for people who are looking for something different - maybe more personalized customer service or niche services like past year tax preparation or even things like having your tax return professional bound and printed, you may not find this on the big online tax sites. How about tax sites that do only state tax returns without actually preparing a federal tax return ?
The Boutique Tax Preparation Sites
We call them boutique tax prep sites because each of them offer some service or feature that distinguishes them from the big guys. They may offer a small service or personal attention that the big guys don’t offer or just cannot offer. Here are a few boutique sites :
TaxBrain.com
Undoubtedly, Taxbrain should rise to the top when you count the number of niche services offered. In recent years, this little known company based in Tracy California has grown leaps and bounds. Taxbrain separates itself from the crowd by offering some niche services :
Past Year Tax Online
They are one of the only companies to offer online tax preparation of prior year taxes going back several years. Turbotax and HRBlock only offer online tax preparation for prior years only for 3 years in the past. TaxBrain has a niche service wherby you can prepare your past year taxes as far as 6 years back.
Military Tax Returns
TaxBrain offers a special discounted rate for the men and women who serve the country and takes care of the special requirements of their returns by offering a product called military tax package
TaxAct
Makers of the boxed software, they have been around for years and years only to be overshadowed by the big guys. One of their specialties is their low priced tax preparation packages combined with good support. Try them out at TaxAct.com. Faithful taxact customers have supported them for years and years.
FreeTaxUSA
Despite the name, its not really free. But they do have a couple of great services. If you do not have a printer, you can get a high-quality, professionally printed tax return here for a few bucks. If your printer is broken or if you are one of those people who are mobile always but want to keep a hard-copy of the return, this service is for you.
To conclude, its a great idea to evaluate your tax preparation needs before you choose your online tax preparation service or software package. Smaller online tax sites offer services that the big guys just cannot provide and you should look into it. Even if you do not like the idea of doing your taxes online or using tax software, there are several free tools available online like theTax Refund Calculator.
Happy Tax Season!
©2011 Tax-Easy.com
First Time Tax Filers
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If this is the very first time you are going to file a tax return, you have come to the right place.
As scary as it it, with a little bit of help you can be on your way to preparing and filing your tax return.
One of the first things you need to make sure is that you have received your W2 from your employer. If you worked more than one job during the year, you should get a W2 from each employer.
As a first time tax filer, you may be eligible to file Form 1040-EZ. This is one of the simplest tax forms out there.
Here are the requirements to file the 1040-EZ form :
- Filing status : You must be single or married filing jointly. If you are married, to be eligible to file Form 1040-EZ, you must file as married filing jointly ie. you cannot file separately
- Your age must be less than 65
- You cannot have any dependents (children or other dependents you take care of)
- Your income must be less than 100,000
- You must not be in bankruptcy
How to file the 1040EZ
You can download the form from the IRS website, fill in the form and mail the form.
Go to an online tax preparation site like TurboTax or HR Block and prepare it for Free. The advantage of preparing it onine and using e-file is you do not have to mail anything to the IRS. Also the refund check will be sent to you in about2 weeks. If for some reason you do not qualify to file form 1040-EZ, the tax software will automatically guide you to the right form(s) for you.
Once you jump in and get it done, you will realize it is not as difficult as it sounds. And you would have saved yourself some dough by doing it yourself, and you will get that boost of confidence to take care of your own taxes next year and the next!
To get you started with your first Tax return, here are some discount coupon links from two of the biggest companies doing Online Tax Preparation :
Good luck with your very first tax return !
©Tax-Easy.com
Refund Anticipation Loans - A Bad Idea !
Refund anticipation loans or RAL’s offered by Tax preparation companies. To obtain this loan, the individual has to prepare their taxes through one of these companies and pay a fee to obtain the loan. The bank that lends the individual the money will charge interest rates which are comparable to credit card loans.
When a tax return is e-filed, its likely that the return is free of mathematical errors, and a good possibility that the IRS might issue a tax refund. So for the lender (the bank), it is essentially a low risk loan with a potential for high returns.
Why Refund Anticipation Loan Is A Bad Idea
The overall cost of a Refund anticipation loan is extremely high. Consumer protection watch dog agencies that have been following the trail of RAL’s have reported that the overall interest rate on a refund anticipation loan can be as high as 250% APR for a $1000 loan ! Even the most unscrupulous of the credit card companies do not charge such outrageous interest rates for an loan.
If you look at it a bit closely, it is meant to penalize impatient people. RAL’s are targeted at lower middle class working people. Considering that with e-filing, a tax refund is issued in as little as 2 weeks. People who really fall into the RAL trap have no idea about how fast they can get a refund with e-file. They are somehow convinced (most likely by the tax preparer) that their refund is going to take longer than expected - which is usually not the case.
Proponents of RAL’s say that this is a good option for people who are in need of emergency cash eg. to pay medical bills. The consumer has to be the ultimate judge. Just like payday loans, pawn shops etc, RAL’s are targeted at the working class in this country.
As a consumer who is thinking about getting a RAL- Beware. You will be paying high interest rates for money that is coming to you anyways. A little patience will save you from the RAL trap.
If you are getting a big refund this year, you should consider adjusting your W4 exemptions so that you get more money on your paycheck throughout the year instead of leaving it with the IRS. Remember a tax refund is money that was withheld from your paycheck. Here are a few tools including a Tax Refund Calculator that you can use.
© Tax-Easy.com
HR Block 20% Discount For Online Tax Prep (for 2010)
The beginning of the tax season is the time when online tax companies are looking to ramp up their business and they usually offer some discounts on the tax preparation. At Tax-Easy.com, we try to find the best coupons for you.
For a limited time HR Block is discounting their online tax prep suite. Use the link below to receive your 20% discount. You will notice the new discounted price with the old price canceled out.
HR Block 20% Off Discount Link
Click Here for a Full Review of HR Block Products
- Be unmarried on the last day of the year,
- Pay more than half the cost of keeping up a home for the year, and
- Have had a “qualifying dependent” live with you for more than half of the year.
Americas Most Bizzare Taxes - 2010!
Lawmakers have made the most wierd taxes in the United States. Some of these taxes are remnants of a bygone era.
Have fun reading :
TurboTax - Most Bizarre Taxes
© Tax-Easy.com
Past Taxes - Saving Your Past Tax Returns
Did you just throw out your old tax returns with your trash! You might think this might not happen, but believe me there are millions of people who do not save their past tax returns. It might not be a surprise - but these are really vital documents to loose. It is needed for everything from applying for a mortgage or refinancing to actually preparing your current years tax returns.
Lets just talk about the last one. Why do you need your past years tax return to prepare the current year tax return ?
There are several things on your last years tax return that are needed to accurately prepare the tax return for this year. There are carryovers, IRA cost basis etc. These little bits of information are vital for an accurate tax return calculation. No matter how accurate your calculations, if your base data is not accurate, your tax calculations will be wrong.
So how many years do you have to save your past tax returns ?
The ideal answer is for ever. But if you save it for upto 7 years, you will be safe for a variety of things. Keep these returns neatly locked up with your important documents - maybe the same place you keep the title for your house or car. If you are concerned about accumulating junk, you can spend a nice evening and scan all your documents into electronic format (pdf). Be sure to save these files onto an external drive or thumb drive - but please be sure to keep that safely and securely.
How Past Tax Returns help you :
When you apply for a home mortgage, almost invariably you will be asked for your old tax returns. If your income in one particular year was below a threshold, you can always show a return from another year (if the bank allows it). These returns are like your record book, that literally “proves” how good (or bad) you have been with your finances. If you have been living “off the credit grid” - that is - if you have never borrowed money or had a credit card, your past years tax returns can help you prove your financial health to future creditors when you need a loan.
If you are a student or a young professional who is just starting to build a financial history. And you will need to prove your acumen at managing your personal finances to potential lenders. Your past tax returns are probably the best documents to prove your financial health. You would need these tax returns when you buy your first house for instance. Don’t just prepare your tax return, get your tax refund and throw that tax return away. Save your past tax returns and you will avoid a lot of heart ache in future.
Note: If you landed on this article and you were looking to actually prepare and file a past tax return. Click here : Past Tax Return Online
© 2011 Tax-Easy.com
What is my Tax Bracket ?
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If you ever asked yourself “What is my tax bracket ?”, you can find your answer here. In general, the higher your income higher the tax bracket and the more you pay in taxes. Yeah that’s is why you find the rich folks always complaining :).
The tax brackets for 2010 are shown below. Tax brackets depends on your filing status : Single, Married filing jointly, Married filing separately and Head of Household. And correspondingly there are 4 separate tables, one for people who file their tax return as single, one for married and another for head of household.
Your tax bracket depends upon two things: your taxable income and your filing status. The options for filing status are:
1. Single
2. Married Filing Jointly
3. Married Filing Separately
4. Head of Household
5. Qualifying Widower with Dependent Child (This can apply to widows as well as widowers.)
Your filing status is based upon your marital and family situation on the last day of the tax year. If on the last day of the tax year, multiple filing statuses apply to you, you are allowed to choose between them.
Single
| 2010 Tax Brackets for Single |
|
| Taxable Income: | Income Tax: |
| $0-$8,375 | 10% of the amount over $0 |
| $8,375-$34,000 | $837.50 plus 15% of the amount over $8,375 |
| $34,000-$82,400 | $4,681.25 plus 25% of the amount over $34,000 |
| $82,400-$171,850 | $16,781.25 plus 28% of the amount over $82,400 |
| $171,850-$373,650 | $41,827.25 plus 33% of the amount over $171,850 |
| $373,650+ | $108,421.25 plus 35% of the amount over $373,650 |
Example: Sarah’s taxable income for 2010 is $40,000. This puts her in the 25% tax bracket. This does not mean that she will actually pay $4000 in taxes (25% of 1000). She will actually pay $6,181.25 . This is calculated as follows:
1) Her first $8,375 of taxable income is taxed at 10%. ($837.50 in tax)
2) Between $8,375 to $34,000 she’s taxed at 15%. ($3,843.75 in tax)
3) Between $34,000 to $40,000 Sam is taxed at 25%. ($1,500 in tax)
4) $837.50 + $3,843.75 + $1,500 = $6,181.25
Married Filing Jointly
For married couples who file a joint return that will include all of their combined income and deductions. If you are a qualified widower with a dependent child, you can use this category also.
| 2010 Tax Brackets - Married Filing Jointly |
|
| Taxable Income: | Income Tax: |
| $0-$16,750 | 10% of the amount over $0 |
| $16,750-$68,000 | $1,675 plus 15% of the amount over $16,750 |
| $68,000-$137,300 | $9,362.50 plus 25% of the amount over $68,000 |
| $137,300-$209,250 | $26,687.50 plus 28% of the amount over $137,300 |
| $209,250-$373,650 | $46,833.50 plus 33% of the amount over $209,250 |
| $373,650+ | $101,085.50 plus 35% of the amount over $373,650 |
Married Filing Separately
This category applies to married couples who are separated.
| 2010 Tax Brackets - Married Filing Separately | |
| Taxable Income: | Income Tax: |
| $0-$8,375 | 10% of the amount over $0 |
| $8,375-$34,000 | $837.50 plus 15% of the amount over $8,375 |
| $34,000-$68,650 | $4,681.25 plus 25% of the amount over $34,000 |
| $68,650-$104,625 | $13,343.75 plus 28% of the amount over $68,650 |
| $104,625-$186,825 | $23,416.75 plus 33% of the amount over $104,625 |
| $186,825+ | $50,542.75 plus 35% of the amount over $186,825 |
Head of Household
If you are unmarried and support one or more dependents, you will qualify to file as head of household. IRS has specific rules to qualify for head of household status :
| 2010 Tax Brackets for Head of Household |
|
| Taxable Income: | Income Tax: |
| $0-$11,950 | 10% of the amount over $0 |
| $11,950-$45,550 | $1,195.00 plus 15% of the amount over $11,950 |
| $45,550-$117,650 | $6,235 plus 25% of the amount over $45,550 |
| $117,650-$190,550 | $24,260 plus 28% of the amount over $117,650 |
| $190,550-$373,650 | $44,672 plus 33% of the amount over $190,550 |
| $373,650+ | $105,095 35% of the amount over $373,650 |
