How to: A Tax Refund Estimate Using My Check Stub
Comprehensive paycheck stubs provide employees with a detailed picture of how much tax is being withheld by their employer at each pay period. Withholding is based on information an employee provides on his W-4 Employee Withholding Allowance Certificate, which details how much money the employee wishes to have deducted in order to meet annual tax obligations. Employees may opt to increase the amount of withholding from their pay, exceeding the amount necessary to cover their tax bill, with the expectation of receiving excess funds in the form of a tax refund upon filing.
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Instructions
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Use the online IRS Withholding Calculator, or a manual calculation method with the first five lines of the income section of the IRS 1040EZ form, to enter your total wages to date, including tips, commissions and bonuses. Also include your year-to-date contributions to tax-deferred retirement plans, such as a 401k, as well as the dollar amount of any wages contributed to a Flexible Spending Arrangement or a Health Savings Account.
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Use the IRS Withholding Calculator or a manual calculation method using lines 10 and 11 of the IRS 1040EZ form to calculate the year-to-date amount of income tax that has been withheld from your paycheck.
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Subtract line 11 from line 10 on the IRS 1040EZ form to arrive at your estimated tax refund figure. If you are using the IRS Withholding Calculator, your estimated tax return amount will be automatically calculated for you, based on the information you entered.
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Tips & Warnings
To get a more complete picture of your estimated tax return, you will need to consider information other than just your paycheck stub. Factor in income received through unemployment compensation, other jobs or income sources, as well as any nonincome earnings related to stock dividends, interest on investments or spousal support payments.
Other factors that may impact the amount of your tax return that cannot be calculated by your paycheck stub alone include your tax filing status, the claiming of Child Tax Credits, itemized deductions and subjectivity to self-employment tax or the alternative minimum tax. IRS Publication 919 can provide more information about estimating your overall tax obligation.
You may adjust your withholding by providing your employer with a revised W-4 form. In general, the greater the amount of withholding, the greater your tax return will be.
Estimating earning and deduction figures, such as the amount of anticipated bonuses or profit sharing revenue, may provide skewed or inaccurate information.
