TaxCaster 2017 Tax Refund Calculator
Tax season is just around the corner. That means it’s time to start thinking about your tax refund and how much you might be getting back.
The TurboTax TaxCaster is an all-in-one online tax tool that helps you work out a range of tax-related figures.
This free tax refund calculator can be accessed online, and because you can use the calculator anonymously, you can rest assured that your personal information is protected.
Let’s look at TaxCaster 2017 and see how it analyzes your income and key tax factors to determine an income tax refund estimate for 2016 – 2017 that you can use to budget accordingly.
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How TurboTax TaxCaster Works
The calculator uses information about the deductions and exemptions that you qualify for, and factors them into a calculation to work out your total taxable income.
This total is then used to work out how much you owe the IRS, or how much you should be refunded, again by working out any potential tax credits and outstanding amounts owed to you.
Determining your Deductions
There are certain payments, transactions, and expenses that will be subtracted from your tax payments. These are called tax deductions: tax deductible payments that mean you can claim a refund back from the Internal Revenue Service (IRS).
Here are several common tax deductions:
- Interest on your mortgage
- Charitable donations
- Municipal income taxes (both state and local)
- Real estate tax
- Certain medical and educational costs.
Here are 10 more tax deductions you may qualify for:
- Jury pay
- Child Tax Credit
- Credit from child care
- State taxes (Spring payments)
- Mortgage interest
- Reinvested dividends
- EITC (Earned Income Tax Credit)
- Selected out-of-pocket contributions
- Tuition fees (for dependents)
- Job expenses
Tracking these deductions throughout the year will help you to work out both your local and state tax liability, but there’s a much easier way. The TurboTax TaxCaster is programmed to understand your potential deductions, and factors them into your overall tax refund estimate.
Qualifying for Exemptions
Most people do not realize that they could qualify for tax exemptions that can go a long way to reducing their tax bills.
These exemptions are structured on certain tiers, meaning you can qualify for different exemptions. There are personal exemptions, which cover individual costs; dependent exemptions that may apply to costs for your family members, and local city, state, or county exemptions that apply to you based on where you stay or do business.
Qualification for an exemption means that you do not have to pay tax on a certain transaction type or amount, which can go a long way to keeping you in the tax man’s good books. These exemptions are particularly useful if your estimate suggests you are not on track to claim a refund.
Do your research and make sure you keep up to date with the annual changes to tax legislation to not only select, but qualify for, a lucrative tax exemption.
AMT stands for Alternative Minimum Tax, and it forms another filter that will be applied when determining your tax status.
AMT is applied to companies, people, and certain types of investment accounts at a consistent rate that is based on the difference between their taxable income and the exemption threshold.
What makes AMT so complex is that it is calculated per different criteria. In addition to normal tax, it factors in asset depreciation and ongoing medical costs meaning the AMT repayment is not automatically the same as your standard tax figures.
Although it sounds complex, the bottom line is that you will be expected to pay the higher of the two tax rates if your federal tax payment is less than the AMT amount calculated. This means that it is essential to know both numbers so that you know what you’re going to pay.
You Can Use the Tax Caster for Free
Unlike the old days when working out your tax payments involved a trip to the tax man, you can use the TaxCaster calculator anywhere, because it is an online tool. For added convenience, you can also download the app.
The tax refund calculator can be accessed any time, meaning you always know exactly where you stand when it comes to your total pay, taxable income, marginal tax rate and whether you will be receiving a refund or a bill come tax time.
It’s an absolute must – try it out today!