The Tax Estimator was developed to give you the ability to quickly provide your taxpayers an estimate of their refund or balance due without having to create an entire tax return. The estimate is based on the ability to file a basic Form 1040 using the Standard Deduction and certain common tax credits. It cannot be used if you are itemizing deductions or have capital gains income. Since only certain types of income and credits are included in evaluating your tax situation, it may differ from your actual situation.
The Tax Estimator includes additional input fields to show how self-employment income including the Qualified Business Income Deduction (QBI), investment income and unemployment compensation might affect your clients. The program calculates the preliminary refund amount, Earned Income Credit, Child Tax Credit, Child Care Credit, and Credit for Other Dependents, and immediately displays the result on screen. The Estimator also lets you print a customized estimate letter, which you can give your clients or place in their file.