What is My Tax Return Estimate?

What is My Tax Return Estimate?

Every year, tens of millions of people get one of the largest checks that they will ever receive for the year. Ironically enough, that check will come from the IRS. It is known as a tax return. If you are eligible for a tax return this year, then you will want to know your tax return estimate. The best way to learn about a tax return and your tax return is to contact MBA Financial & Accounting Solutions. We have been a top firm for tax and accounting for many years in Southern California. After this article, call 800-576-5746 to find out how one of our MBAFAS tax professionals can further assist you. Here, we will take a look at what exactly a tax return is and how you can find out your tax return estimate. 

What is a Tax Return?

A tax return is also known as a tax refund. This is the amount of money that you will receive from the IRS. This money was originally taken from your paycheck as tax. However, tens of millions of Americans end up overpaying their tax or they will be entitled to a refund due to certain tax credits and tax write-offs. Therefore, it is always important to understand and take advantage of any tax credits and tax write-offs which apply to you. 

How to Find Your Tax Return Estimate

There are a number of different ways that you can find out your tax return or tax refund estimate. Here’s a look at four popular ways that you can find out how much you may be getting from the IRS. 

Use a Tax Return Estimate Calculator 

If you want to know your estimated tax return before you file, then you can use a tax return estimator. You can use the following tax return, estimate calculators:

Note that both calculators are designed for the current tax year. It is assumed that this link will be updated with the latest tax year calculations going forward. 

File Electronically 

Another way that you can quickly find your tax return estimate is to file your taxes electronically. You can use a number of e-file services like Turbo Tax and H&R Block to file your taxes. While you are in the process of entering your tax information, the software will update and tell you your current tax return estimate. Of course, you are not guaranteed this amount. This is the amount that you are estimating and submitting to the IRS. Ultimately, the IRS will decide your tax return amount. 

Using a Tax Preparer

Also, you can hire a tax preparer or a tax accountant to prepare your taxes. At the end of the preparation process, the tax preparer or tax account will present all the tax forms to you and provide their estimate which will be submitted to the IRS. Again, this amount is not guaranteed. The IRS will review tax forms and decide how much you will receive as a tax refund. 

Notice from the IRS 

In some cases, the IRS will send you a letter and inform you of your tax return estimate. The IRS will usually send you a letter if the estimate is different from the one that you have submitted.

Your Online IRS Account

If you have an online account with the IRS, then you can receive up-to-date information on your return. Your online account will let you know the status of your tax return including the approved tax refund amount and when the refund will be paid to you. 

How Much is the Average Tax Return? 

For the 2021 tax year – which is paid in 2022 – the average tax return is estimated to be $2,321.

When Should I Expect My Tax Return?

The IRS takes, on average, about 21 days to process and paid your tax return. Here’s a look at the factors that can affect how quickly you are paid:

  • Filing early leads to faster tax returns
  • Filing electronically lead to faster tax returns
  • Having your tax refund paid electronically to your bank account allows for quicker processing times.
  • Filing paper tax forms leads to slower payment times
  • Errors and omissions on tax forms can lead to delays

Understanding Your Tax Return Estimate 

It’s a good idea to understand your tax returns. This can help you better budget your money when you receive your payment. For best results, be sure to file electronically or have a professional tax preparer handle your returns. Call 800-576-5746 to have a professional tax preparer make sure you are getting back what is owed to you!