Tax Return Calculator & Refund Estimator

Tax Return Calculator & Refund Estimator

Whether you save it for retirement, use it to pay down credit card debt or spend it immediately, a tax refund can be a great financial boost. Many Americans depend on their tax refund as an important part of their annual budget. If you want to estimate how big your refund will be this year, you’ll be well served by our free tax return calculator.

A financial advisor can help you understand how taxes fit into a financial plan. To find a financial advisor who serves your area, try SmartAsset's free online matching tool.

How to Use Our Tax Return Calculator

Our tax return calculator will estimate your refund and account for which credits are refundable and which are nonrefundable. Because tax rules change from year to year, your tax refund might change even if your salary and deductions don’t change. In other words, you might get different results for future tax years than you did for other recent years. 

If your income changes or you change something about the way you do your taxes, it’s a good idea to take another look at our tax return calculator. For example, you might've decided to itemize your deductions rather than taking the standard deduction, or you could've adjusted the tax withholding for your paychecks at some point during the year. You can also use our free income tax calculator to figure out your total tax liability.

Using the calculator should provide a close estimate of your expected refund or liability, but it may vary a bit from what you ultimately pay or receive. Doing your taxes through a tax software or an accountant will ultimately be the only way to see your true tax refund and liability.

Key Tax Return Terms to Understand

When calculating your taxes, there are some key terms that can help you better understand how your income is taxed and what might reduce your final tax bill. Here are some of the most important terms to understand as you prepare your tax return:

• Tax deduction: The IRS uses tax deductions to reduce the portion of your income that is taxed. You can choose between the standard deduction, a fixed amount based on your filing status, or itemized deductions, which include specific expenses like medical bills, mortgage interest, or charitable contributions.
• Adjusted gross income (AGI): AGI is your total income for the year minus specific adjustments, such as retirement contributions or student loan interest. This number affects your eligibility for many deductions and credits.
• Tax bracket: These are income ranges that are taxed at different rates. As your income increases, portions of it fall into higher tax brackets. Only the income within each range is taxed at that specific rate.
• Taxable income: This is the amount of income left after subtracting deductions from your AGI. It's the number used to calculate how much tax you owe.
• Tax credit: Tax credits reduce your tax bill directly, dollar for dollar. Some credits can even give you a refund if they’re larger than the tax you owe.
• Standard deduction: This is a set amount that most taxpayers can subtract from their income without itemizing. The amount depends on your filing status. For 2025, the standard deduction is $15,000 for individuals (including those married filing separately) and $30,000 for married couples filing jointly or surviving spouses. Heads of household can claim $22,500.
• Itemized deductions: Itemizing is an alternative to the standard deduction. These include specific expenses like state taxes, mortgage interest and large medical costs. You use it as an option when it saves you more money than the standard deduction.
• Withholding: This is money your employer takes out of your paycheck to cover income taxes. The amount withheld is applied to your tax bill when you file your return.
• Refundable tax credit: A tax credit that can result in a refund, even if you owe no tax. If the credit is larger than your tax bill, the IRS sends you the difference.
• Nonrefundable tax credit: A tax credit that can lower your tax to zero, but not below zero. You won't get a refund for any leftover amount.
• Filing status: Your filing status (single, married filing jointly, married filing separately or head of household) helps determine your tax brackets, standard deduction and eligibility for certain credits.
• Dependent: People you support financially, like children or qualifying relatives. Claiming dependents may make you eligible for tax benefits.
• Earned income: Income from working—such as wages, salaries, or self-employment. Some credits, like the earned income tax credit, are based on this type of income.
• Capital gains: Profit earned from selling investments like stocks, property or other assets. Capital gains may be taxed at different rates depending on how long you held them.

How to Calculate Your Tax Refund

Every year when you file your income taxes, three things can happen: You can owe the IRS money, the IRS could owe you money, or you end up roughly even by paying the right amount in taxes throughout the year. If the IRS owes you money, it will come in the form of a tax refund. However, if you owe the IRS, you’ll have a bill to pay. Our tax return calculator can help you figure out how much money could be coming your way, or how much you’re likely to owe.

There are several reasons why the IRS could owe you a tax refund. These include having overpaid your estimated taxes or withholding too much from your paycheck at work. You might also qualify for enough tax deductions and tax credits that you eliminate your tax liability and are eligible for a refund. Our tax return calculator takes all this into account to show you whether you can expect a refund or not, and give you an estimate for how much you could get.

Overview of Tax Deductions and Credits

While a tax deduction reduces your taxable income, a tax credit is a dollar-for-dollar discount on your tax bill. So, if you owe $1,000 but qualify for a $500 tax credit, your tax bill goes down to $500. However, getting that difference refunded to you will depend on whether the tax credits that you qualify for are refundable.

Refundable tax credits go into your tax refund if they exceed what you owe. By contrast, some tax credits are nonrefundable, which means that they can reduce your tax liability down to zero, but can’t be refunded to you if they exceed your liability. Our tax return calculator takes all of this into account when figuring out what you can expect at tax time.

Tax credits can apply to a range of situations. Some credits help families, others cover school costs, home energy upgrades, or saving for retirement. Each one has its own rules, so knowing which credits you can get could save you money. Here's a roundup of eight common tax credits that you may be eligible for:

• American opportunity tax credit (AOTC): The AOTC credit offers up to $2,500 per year for eligible students in post-secondary education, covering 100% of the first $2,000 and 25% of the next $2,000 in qualified expenses. It can be claimed for up to four years per student, and up to $1,000 of the credit may be refundable if it reduces your tax bill to zero.
• Child and dependent care credit (CDCC): This can help you reduce your federal income tax, if you had to pay for care in order to work or look for work. You may qualify for the CDCC credit if you paid expenses for a child under 13, a spouse, or a dependent who can’t care for themselves and lived with you for more than half the year. The credit amount depends on your income and the cost of care, and you must have lived in the U.S. for over half the year (with some exceptions for military members).
• Child tax credit (CTC): The CTC credit gives parents or guardians up to $2,000 for each child under 17. Up to $1,700 of the credit can be refunded if it brings your tax bill below zero. To qualify, your individual income must be under $200,000 ($400,000 if married filing jointly). You can only get the CTC when you file your tax return.
• Earned income tax credit (EITC): The EITC credit helps working individuals and families with lower to moderate incomes, particularly those raising children. For 2025, the credit ranges from $649 to $8,046 (up from $632 to $7,830 in 2024) based on income, filing status, and number of children. It helps lower the amount of tax you owe and may increase your refund.
• Foreign tax credit: The foreign tax credit helps U.S. taxpayers lower their federal income tax if they’ve already paid income taxes to a foreign country. It’s designed to prevent double taxation on the same income. The tax must be based on income, paid to a foreign government, and not be a sales or property tax. If the credit is more than what you owe in U.S. taxes, you may be able to apply the extra amount to a different year.
• Lifetime learning credit: This credit offers up to $2,000 per year to help pay for college, graduate school, or job training courses. It can be claimed for yourself, your spouse, or a dependent, and there's no limit to how many years you can use it. The credit is based on qualified education expenses and begins to phase out if your income is over $80,000 ($160,000 for joint filers). To claim it, you usually need a Form 1098-T from the school and must file Form 8863 with your tax return.
• Residential clean energy credit: Claiming this credit will allow you to get 30% back on the cost of solar, battery storage, or other clean energy systems for your home. It lowers your tax bill and can be used over future years if not fully used right away. File IRS Form 5695 with your tax return to claim it.
• Saver’s credit: Low- to moderate-income workers can use this credit to get a tax break by saving for retirement. If you put money into a 401(k) or IRA, you may get a credit worth 10%, 20%, or 50% of what you contributed, depending on your income and filing status. The most you can get is $1,000 if single or $2,000 if married. For example, if you qualify for the 50% rate and put in $2,000, you get a $1,000 credit. This credit lowers your tax bill but won’t give you a refund if you don’t owe any tax.

How to Track Your Tax Refund

Many taxpayers opt for direct deposit when receiving their tax refunds, as it's faster and more convenient than waiting for a paper check. When filing your return, you'll be prompted to provide your bank account and routing numbers. This will allow the IRS to deposit your refund directly into your account.​

Most people get their tax refund in less than 21 days, if they file electronically and use direct deposit. This is the fastest way to receive your refund.

The timing of your tax refund can be delayed for a few reasons. These can include filing an incomplete or incorrect return, claiming certain credits such as the EITC, or the time it takes your bank to process and post the deposit. 

You can track your refund status using the IRS's "Where’s My Refund?" tool at irs.gov/refunds or the IRS2Go mobile app. To check your status, you'll need your Social Security number, filing status and the exact refund amount. 

Knowing your refund amount can help you plan ahead. You might use the money to boost your emergency fund, pay down debt, or cover big expenses. Our tax return calculator can also help you check if your current tax withholdings are on track.