How it Works
1. State 'Total Tax Paid'.
2. Specify 'Total Tax Owed'.
3. Result is Refund (if positive) or Owed.
What is Tax Refund Estimator?
Compares total taxes paid vs total tax liability.
Step-by-Step Guide
1. Paid
Withholding sum.
2. Owed
Calculated tax.
3. Refund
Difference.
Example
Input: $12k Paid, $10k Owed
Result: $2,000 Refund
FAQ
What is a refund?
Return of excess tax paid during the year.
Is a big refund good?
Financially, no. It's better to have that cash flow monthly.
How to adjust?
Update your W-4 with your employer.
When do I get it?
Usually within 21 days of e-filing.
Is it taxable?
Federal refunds generally aren't; interest on them is.
⚠️ Important: Financial figures generated here are for planning purposes. Actual results may vary based on market conditions and individual circumstances.
Conclusion
While getting a refund feels good, it means you gave the government an interest-free loan. Ideally, adjust your withholdings so you break even and keep more money in your monthly paycheck.