Before you start estimating your potential refund or amount owed, it’s crucial to gather the right details and understand key IRS guidelines. Below is a quick overview of what you need to know:

1. Gather Essential Documents

   • W-2 Forms (wages, tips, other compensation)
   • 1099 Forms (interest, dividends, freelance work)
   • Records of Federal Tax Withheld
   • Qualified Deductions/Expenses (IRA contributions, student loan interest, etc.)

2. Know Your Filing Status

   • Single, Married Filing Jointly, Married Filing Separately, or Head of Household
   • Each status has different standard deductions and tax brackets.

3. Understand Credits & Deductions

   • Non-Refundable Credits can reduce your tax liability but won’t give you money back beyond $0.
   • Refundable Credits can boost your refund if they exceed your tax liability.

4. IRS Rules & Limitations

   • Many credits have phaseouts based on income levels.
   • Make sure to use accurate numbers for both income and deductions so the calculator can give the best estimate.

5. Illustration Only

   • This calculator is for demonstration purposes and doesn’t replace official advice. If you want personalized guidance and to ensure maximum tax savings, consider booking a meeting with The Tax Lyfe, a credentialed firm led by an Enrolled Agent. We specialize in tax preparation, filing, planning, bookkeeping, and payroll services for individuals and businesses.