How to Calculate Federal Income Tax Refunds
- 1). Calculate federal income tax refunds by filling out the correct individual income tax return form that applies to your individual tax situation, Form 1040, Form 1040EZ, Form 1040A, or Schedule C, if you are self-employed. Each form is located on the Internal Revenue Service website.
- 2). Use the instructions provided for the individual income tax return you are filing to assist you in accurately filling out the tax form. Each line is explained in detail in the instructions to make them more understandable for non-tax professionals to figure out.
- 3). Begin filling out your individual tax form. Enter your income information into the income section, which includes any wages, salaries, interest, dividends, social security and unemployment benefits, capital gains, and any business income or loss as stated on your Schedule C, if you are self-employed, and this is your total income. Your adjusted gross income will be determined based on any information you have to enter into the adjusted gross income section, including moving expenses, self-employment tax, IRA deductions, student loan interest, tuition and fees or any educator expenses.
- 4). Subtract the total of the amounts in the adjusted gross income section from your total income to get your adjusted gross income. From your adjusted gross income you will subtract taxes and credits, such as your standard deduction, exemptions, child tax credits, retirement contribution credits and other listed credits.
- 5). Enter your payments information into the payment section. This includes earned income credits and home-buyer credits. If your payments are more than your tax, you will receive a federal income tax refund.
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