What You Should Know About Tax Return Calculators
There are tax return calculators on nearly every single tax website around…you can even find them on the IRS website (//www.irs.gov/). These tax return calculators can be enormously helpful as you plan for your tax return, or to help you plan if you are concerned that you might owe taxes back to the IRS this year.
While these tools are useful and can be fairly accurate, it is important to keep several things in mind if you decide to use them:
1. The data that you get from a tax return calculator is only as good as the data that you put in. It is critically important to include the most current and accurate tax data possible about your income, IRAs and your potential deductions. The calculator can only give you accurate information if you include accurate information about yourself.
2. Tax calculators can only provide an estimate: Tax return calculators are not set up to take all factors into account and cannot necessarily incorporate unique information or differentiate between various information that you give. It will provide you with an estimate, not an exact figure of what you will owe or receive as a refund. While the calculator tools are helpful and can provide you with a general sense of how your tax return may look like this year, they are only able to provide you with a very limited picture.
3. Tax calculators can be out of date: If you are searching online for a calculator, it is possible that the formulas it is using are out of date or have not been updated based on new tax law. Just like with anything, It is always best to consult with a reputable website or tax return software that you can verify.
Additional ways to plan and calculate your annual tax return
If you are interested in trying to plan exactly what you may owe or receive this year, another great strategy is to consider partnering with a tax firm for your annual tax preparation. Depending on how soon you get started, a tax professional can actually help you manage your finances throughout the year in a way that will maximize your return and leave you with no surprises. A tax professional can take a look at your entire financial picture and help you develop a tax strategy and accurately estimate exactly how much you will get back or owe to the IRS.
If you are looking for ways to plan for the coming tax year or have questions about how best to manage your investments and earnings, call Success Tax Relief at 1-877-825-1179 to speak to one of our experienced tax professionals. They can provide you with a detailed free consultation that can help you determine if you would like to work with our firm on your taxes.
Success Tax Relief has more than 30 years of experience helping our clients navigate all types of tax issues and has built a reputation for working tirelessly for each and every one of our clients. Whether you have potential tax problems to consider or would simply like help looking ahead and planning, we can help. Give us a call today!