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Completing an estimate income tax return can be done by understanding the tax tables when published and accounting for any deductions and credits that may be due you prior to preparing your filing. Most individuals who file a simple 1040EZ return may able to simply estimate their tax obligation using their income and a current tax schedule.
Estimates for Complex Returns
For individuals who file a more complex return however, the process of estimating an income tax return requires knowledge of deductions, credits and any other items of income that need to be reported. Prior to receiving a tax statement from your employer in January, most individuals can estimate the amount of taxes withheld by looking at past pay stubs. The percentage withheld is a fixed percent that can be determined by dividing the amount withheld by the gross amount of pay.
Compare Taxes Withheld to Taxes Due
Take this amount and compare it to the tax table rate applicable for your income. If the amount withheld exceeds your table rate, you should expect some refund when filing your taxes. For a more accurate measure, discount your income by any applicable deductions and credits and allowances that can be taken.
