Estimate your tax refund or amount owed. Enter income, withholding, filing status, dependents, and deductions.
A large refund means you overpaid taxes throughout the year — essentially giving the government an interest-free loan. Consider adjusting your W-4 to have less withheld and more in each paycheck.
If you owe more than $1,000 at filing, you may face an underpayment penalty. Adjust your withholding or make quarterly estimated payments to avoid this.
Itemize if your deductible expenses (mortgage interest, state/local taxes up to $10,000, charitable donations, medical expenses above 7.5% AGI) exceed the standard deduction. Otherwise, take the standard deduction.