Tax estimators can give every taxpayer a great insight into how their taxes are likely to be for that year. These estimators are almost always in the form of a calculator and there are different kinds. With tax estimators, you can calculate your tax refund, income tax, take-home pay, total tax bill, and more for 2020.
This is not only good for getting an estimate of your total tax liability for that year but to see your tax refund if your withholdings exceeded your total tax bill. In our opinion, the best tax estimators are offered by H&R Block and TurboTax which happens to be the major two companies that are in the tax software business.
While there are other platforms that you can estimate your taxes from ground to top, the most reliable ones are going to be either one of these two. When it comes to choosing though, all of their tax estimators are free so why not try both?
Although you won’t be needing an estimator to estimate your tax refund if your tax situation is simple, getting the visuals may help you comprehend more.
Other than taxes, you can estimate your credit score with credit monitoring services.
Estimate Taxes by Yourself
If you want to estimate your taxes by yourself, you only need to make a few calculations and that’s it!
Simply take your total income earned in 2019 and subtract the available deductions to you. Here are a few examples of both itemized deductions and standard deductions for estimating your tax bill yourself.
Standard Deduction amount for 2019 taxes will be paid in 2020 is $12,400 for Single filers, $24,800 for joint filers, $18,650 for head of household.
John’s income in 2019 is $45,000. He will file his taxes as a single filer and claim the standard deduction with no other deductions.
$45,000 – $12,400 = $32,600
$32,600 is John’s Adjusted Gross Income. Therefore, his total tax bill is going to be 12% of $32,600
12% of $32,600 = $3,912
John’s total tax bill for his 2019 taxes is $3,912
If he withheld $5,000 in taxes through his paychecks, his tax refund will be $1,088.
Emily’s income in 2019 is $75,000. She will file her taxes as head of household. Since her itemized deductions exceed the standard deduction for head of household, she will itemize.
Emily’s itemized deductions total at $20,000.
$75,000 – $20,000 = $55,000
$55,000 is Emily’s Adjusted Gross Income. Therefore, her total tax bill is going to be 22% of $55,000.
22% of $55,000 = $12,100
If she withheld $15,000 in taxes through her paychecks, her tax refund is going to be $2,900.