As the year ends, many folks are starting to look at their taxes and assess how much money they might be getting back when filing for 2022!  H&R Block has a great refund calculator available online for free that we highly recommend.  Given that this tool is not unique, we wanted to breakdown the logic behind this recommendation for the H&R Block Tax Refund Calculator 2022, and to provide a little education on how these taxcalculators work.

Why use an online tax calculator?

There are numerous “free tax calculators” that you can find online that will help in the process of evaluating your tax situation.  The online tax calculators available now are very accurate so long as you know the factors that will affect your situation.  For individuals that do not have complicated tax situations such as individual filers with dependents, these tools are very easy to use.

Basics of How Your taxes are calculated

There are numerous factors that will affect your tax refund calculation.  Your specific tax situation will depend on who you are, where you work, and the City and State you live in.   Without getting into an essay about every calculation, the following data points are also considered.

• Total Income
• Individual vs. Married
• Child Tax Credits
• Mortgage Interest Deductions
• Earned Income Tax Credits
• Investment Income
• Rental Property Income
• Capital Gains on Home Sale
• Small Business Income
• Passive Incomes

Calculator Spotlight: H&R Block

The H&R Block Tax Refund Calculator is one of the better tax tools available on the web.  They breakdown the data inputs into three primary sections:  About You, Income, and Expenses.  Like mentioned above, this is a simplified way to look at your tax situation that is still effective at giving you a return estimate.

The biggest reason why this calculator is so handy is that it brings a lot of variables into its estimate.  Things like child tax credits, earned income tax credits, and other specific deductions are all considered in the input process.

Once you complete your input, H&R Block gives you a summary report of all your inputs.  This is really handy for those looking at a quick calculation, because you can print off the report and compare any facts or information you were uncertain towards.  The report is printable, and they even offer a free set of tips and checklist for getting ready to file your taxes. American Tax Service

Does the new Trump Taxes affect my H&R Tax Refund Calculation?

No.  The Tax Cuts and Jobs Act of 2018 that was passed this year will not go into effect until next filing season in 2022.  There are some interesting changes to the fundamental structures of how we pay our taxes, but these impacts are still another year away for filers.  If you are curious the impact of the Tax Cuts and Jobs Act, we have a nice article detailing the upcoming tax changes.