Income tax question?

Question

If I make around 20,000 a year,I'm a single Mom of two(just had another baby) how much of a refund woud I get when tax season comes again?

Answer 1

First you would want to know what your tax is. If your child was born before the end of the year, based on current numbers, your tax is going to be about $256. I'm making a bunch of assumptions here, including that you are renting your home, and that you and your children are all US citizens or legal residents, and that the children lived with you all year (counting the portion before the baby's birth as living with you), and that your wages are the entire support of your family.

Then, there is your withholding. That depends on how you fill out your W4. So take the withholding on your paycheck and multiply that by the number of paychecks you expect to receive this year.

Then there is EIC. Based on current IRS numbers, that should be around $3438. Add that to your withholding, subtract the $256, and you'll have a pretty fair estimate of your refund.

The numbers will change before next year.. I don't have next year's information in front of me. Expect some minor adjustments for inflation.

Answer 2

How much do you pay in? The real question is how much tax do you need to pay and are you withholding appropriately. There is no point in letting Uncle Sam have your money for a year and then give you back a big chunk. Figure out what your tax will be next year and pay that much. Your take-home will be better and you get the money now, with no money at tax time.

Answer 3

Go to HR Block.com, and on their website, click on a tab that says calculators, and when you open it up, right there it says 2007 tax estimator, just open it up, and answer the questions or fill the blanks, and it will get pretty close to what your refund will be! Then you just adjust accordingly!

Answer 4

You won't likely owe any income tax, so your refund would be whatever you paid in for federal withholding, if any, plus EIC of around $3438.