a

Easy way to estimate your tax return, Manually calculate your refund

[Music]

Doyle

hello everybody if you have an income

from w2 only no income from your

business or trade or stocks or any other

source of income and your income is less

than 400,000 for married filing jointly

or $200,000 for other cases you can use

this method to estimate your tax return

as they've said examples are the best

way to explain I am going to take an

example of an employee with two children

under 17 years old that have a social

security number and have a w-2 form with

$35,000 as an income you'll find this on

line one and $1,200 as federal

withholding you'll find this on line two

so now we are going to start tax return

calculations for this employee I need

you to write down thirteen lines on the

first line enter the number of children

times 2000 he has two children so you

will get 4,000 on the second line enter

the number of children again

but times 1400 you will get 2800 on line

three enter the income from the w-2 form

which we assume is $35,000 on the fourth

line enter the federal withholdings from

the w-2 form we assume this is 1200

on line five enter the standard

deduction this deduction varies

according to the filing statute in the

case of this employee the standard

deduction is twenty four thousand four

hundred because he is married filing

jointly please use the right deduction

for your filing section you should pay

attention as the standard deduction will

be different from what shows up on the

screen if you are blind or if your

spouse is blind or if your age or your

spouse's ages more than 65 years on line

6 subtract the fifth line from the third

line you will get ten thousand six

hundred the IRS calls this amount

taxable income you will need this line

for the following line on line seven we

are going to calculate the tax

please use this tax table to figure out

your tax for example in our case where a

taxable income line six is ten thousand

six hundred and the filing statute is

married filing jointly the tax will be

one thousand sixty you need to figure

out your tax according to taxable income

line six not your income line three on

line eight enter the child credit this

equals the smallest of line one or line

seven

so line eight will be one thousand sixty

on line nine subtract line eight from

line seven

the IRS calls this the total tax so line

seven

- line eight is zero enter zero on line

nine and move on to line ten on line ten

calculate your earned income credit you

can use your income line three and those

two tables showing up on the screen to

figure out your credit for example an

employee without children and his filing

statue is single and his income is less

than six thousand nine hundred twenty

the applicable rate for obtaining this

credit is seven point sixty five percent

that means a times I but if his income

is between 6920 and 8650 his credit will

be C which is the highest value of

earned income credit which is 529 in

this case if the income is greater than

eight thousand six hundred fifty and

less than fifteen thousand five hundred

seventy the credit rate is seven point

sixty five percent you need to subtract

8650 from the income then multiply the

result by the ratio 7.67 percent then

subtract what you've got from the

maximum value of credit which equals

five hundred twenty nine as shown on the

table in our example we have an employee

his filing statues married filing

jointly

he makes thirty five thousand dollars

and he has to

children so is earned income credit will

be three thousand six hundred eighty

four dollars we got this amount using

this method please note you must check

if you're eligible to receive this

credit because there are some things

that may prevent you from getting this

credit for example you cannot get this

credit if you are married filing

separately or if you do not have a

social security number online eleven add

additional children credit you can find

this following these two steps first

take the smaller of line two or line one

subtract line seven which equals two

thousand eight hundred then take the

smallest between the obtained result and

the income minus two thousand five

hundred times fifteen percent that means

the smallest between two thousand eight

hundred and four thousand eight hundred

seventy five so enter two thousand eight

hundred on line eleven on line twelve

add line four and ten and eleven the

total of these lines is called total

payment which means 1200 plus three

thousand six hundred eighty four plus

two thousand eight hundred you will get

seven thousand six hundred eighty four

please enter this total online twelfth

move on to the last line on line

thirteen which is the last step

compared line nine and line twelve

if line twelve is greater than line nine

that means you will get a refund of line

twelve minus line nine

which is 7680 for this is what we have

in our example but if line 9 is more

than line 12 subtract line 12 from line

9 the result is the amount you owe us as

you have seen we are able to calculate

the tax return manually without using

the programs however it should be noted

that this method only works with workers

who obtained only a w-2 form and have no

other source of income it also only

works with workers who received an

income of $400,000 or less for married

filing jointly and $200,000 for other

cases hope you find this method easy and

helpful thanks for watching goodbye