If you're looking for a free, quick and easy way to estimate taxes or to calculate tax refunds or money owed, then it may be worth taking a look at the AARP 1040 tax calculator before you file your return. How does this online tool work and what can it tell you?
What Does the AARP 1040 Tax Calculator do?
This is an online calculation tool that can be used to estimate total taxes, refunds and any money that is owed based on the general guidelines of Form 1040. The calculator is based on IRS tax tables for the current year. Users need to input data into pre-specified fields, at which point estimates will be given. This also includes information on your tax bracket, if applicable.
How to Calculate Taxes and Refunds Using the 1040 Calculator
In order to get an estimate using the 1040 calculator, you need to input a range of data into various drop-down sections. These are roughly based on the areas of an individual income tax return and include information that will give a taxable income estimate, including:
- Filing status.
- Tax credits.
- Other taxes.
- Tax payments.
the data that you have inputted in detail. The AARP site also runs a list of definitions to explain the data needed for each section under the calculator itself which is worth reading before/as you fill in the form.
How Accurate is the AARP 1040 Tax Calculator?
The site does remind users that any results given by the calculator are for illustrative purposes only and should be viewed as estimates. As with any online financial tool, this is also only as accurate as the data that you enter. It may, however, save you some time and make it easier to get an idea of your current tax position which could help when it comes to filing a 1040 down the line.
Free Tax Counseling for the Elderly May Also be Useful
There are a couple of free tax advice and preparation schemes that may also be useful to seniors that want more help filing returns. These include the Volunteer Income Tax Assistance (VITA) and the Tax Counseling for the Elderly (TCE) programs. The AARP may also be of assistance here as it runs a free Tax-Aide campaign as part of the TCE program.
Those interested in learning more about AARP and its services may find the following articles useful:
- AARP Membership: Is it Worth Becoming a Member of AARP?
- The AARP Medicare Donut Hole Calculator: How Does it Work?
- ARP Career Fairs: How Can They Help OIder Workers Find Jobs?