Just as economic stimulus measures gave Americans more tax refunds in 2008, continuing tax breaks will likely result in a high number of tax refunds for the 2009 tax year. As United States taxpayers begin filing 2009 federal income tax returns in the spring of 2010, many undoubtedly find themselves wondering how much of an income tax refund to expect.
Tax Refund Estimators – Calculate Estimates Before Filing Tax Returns
Luckily, for these individuals, several reputable websites offer ways to estimate refunds of taxes for free online. In this article, learn where to find two IRS tax refund calculators online in order to estimate a refund of taxes.
Below, find links directly to the TurboTax and H&R Block tax refund estimators. Also, learn several ways many Americans like to spend federal income tax refunds.
Free Income Tax Refund Calculators – Estimate Refund of Taxes
The only definitive way an individual will know how much his or her tax refund will be is to prepare the actual tax return. But anyone who wants a quick estimate of their expected refund of taxes paid in might want to use a free online tax refund calculator.
TurboTax and H&R Block both offer free tax refund calculators online.
- TurboTax Federal Refund Calculator (look for “TaxCaster”)
- H&R Block Income Tax Refund Calculator (look for “Tax Estimator”)
Using Free Tax Refund Estimators to Calculate Check Amounts
The TurboTax federal refund estimator seems a bit more comprehensive than the H&R Block version. In general, individuals should be prepared to estimate the items that would flow into the household’s income tax return. This includes marital status, age, wage amounts, withholding, unemployment and other income amounts, home-related expenses (like mortgage interest, home improvements, and real estate tax), retirement contributions, and charitable donations.
Individuals should also be able to enter the amounts of estimated tax payments, number of dependents and any related child care expenses, and estimate itemized deductions like medical bills. Finally, taxpayers should be ready to indicate intent to take advantage of 2009 tax incentives like the first-time home buyers tax credit and new vehicle tax deduction.
Large Tax Refund Estimate? Plan How to Spend It Wisely
In an article on the Today Show website, Laura T. Coffey shared a unique list of ways to consider spending any extra money received from tax rebates. The same thought process can be applied to any refund of tax money, including federal income tax refund checks. Here are some ways to consider spending or investing rebates or refunds of taxes.
- Donate to charity
- Invest in retirement (through an employer’s plan or individually through a discount broker like Scottrade.com)
- Make car repairs
- Pay down a home loan, especially high interest home equity lines of credit (anyone interested in refinancing a home mortgage to lower monthly payments could use a federal income tax refund for closing costs)
- Start an emergency fund
- Tackle credit card debt or any other outstanding bills
- Take a vacation
- Upgrade household appliances
Instead of spending an individual tax return refund on frivolous items, consider a practical purpose for this cash. All of the above serve as ways to do good for yourself or for others (helping the environment or someone in need).
Where’s My Federal Tax Refund? Check IRS Direct Deposit Status
For anyone who has already filed a federal income tax return, there are ways to check the status of a direct deposit or check from the IRS. Learn more about IRS refund status (and how to find IRS mailing addresses) in the IRS Tax Refunds article.
Looking for a tax refund check cashing service? Learn about a low-cost option in the the following articles:
Walmart MoneyCard Prepaid Visa Debit Card
Related article:
IRS Prepaid Debit Cards for Income Tax Refunds
Resources:
Fund Your Own Economic Stimulus: Should you boost the economy or focus on your own stimulus plan? by Laura T. Coffey. Retrieved from today.msnbc.msn.com on February 3, 2010.
IRS Announcement (IR-2009-101). Retrieved from irs.gov on February 3, 2010.
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Lena Gott - Lena Gott is a Certified Public Accountant who gives practical financial advice to her readers.
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