How to Calculate a Rough Estimate of Your State Tax Refund Status
You may want to get an idea of how much money you’ll be getting from the state come tax season. Although typically less than a federal tax refund, your state tax refund status can still make a difference. There are a few ways you can check how much you’ll be getting.
One of the first things you must do to learn your state tax refund status is research. Different states offer different discounts and allowances. It’s best to know going in what your state offers so you can take full advantage.
For instance, many states offer a “stillborn” allowance. If your child was stillborn, the allowance says it’s still a child and able to be claimed. There are others depending on the state, so look them up.
Have you calculated your federal tax refund status yet? If so, write down the taxable wages. If not, calculate how much you’ve made throughout the year. If you collected pay stubs all year, simply add them up. However, this is much easier when you have the W-2s from your employers. The total is already on there.
Now, add up how much money was taken out of your wages for state taxes. Again, this is easier when your W-2s arrive. If you kept great records, though, you can add it all up.
Next you’ll want to find out what tax bracket you’re in. This is different than looking up your federal tax bracket. Almost every single state calculates tax brackets differently. Luckily, this information is readily available online. Now it’s time to calculate your state tax refund status.
Take into account what allowances your state offers. For instance, the stillborn credit may amount to up to $2500. This can greatly affect your tax refund status.
Now, just take the amount from the state tax bracket you fall into. Subtract that number from the amount you actually paid. Again, that number will be on your W-2 or you can calculate it from pay stubs. The remainder is your state tax refund status.
Even if you’re unsure of the allowances your state offers, this will give you a rough estimate on how much you’ll get back. However, be sure you take full advantage of your state’s allowances when you file.
If necessary, visit a tax service in person or online. They sometimes also offer free calculators to help you determine your tax refund status. These can assist you when figuring out your rough estimate of your state tax refund status as well.