Will you owe money this tax year? Or get a refund?

NerdWallet’s federal income tax calculator quickly tells you how much you can expect to owe - or get back - in taxes. Simply input your tax filing status, annual gross income, and other information and you’ll have an estimate ready!

Have students play around with the calculator by:

1. entering different amounts for annual gross income, age, and taxes withheld
2. clicking on “Show Advanced” and entering figures for 401(k) and/or IRA contributions (make sure these are within the annual limits - $23,000 for 401(k), $7,000 for IRA)

Questions:

1. In what instances might someone get a refund? Owe taxes?
2. Which variables have the most (or least) impact on how much someone owes or gets back as a refund?
3. How might someone use this calculator to increase their chances of getting a refund in the next tax year?
4. Why do you think calculators like this one might be useful when planning your overall finances?

For more engaging taxes curriculum, explore NGPF's Taxes unit! The CALCULATE: Completing a 1040 activity is a teacher favorite!  

About the Author

Sonia Dalal

Sonia has always been passionate about instruction and improving students' learning experiences. She's come a long way since her days as a first grader, when she would "teach" music and read to her very attentive stuffed animals after school. Since then, she has taught students as a K-12 tutor, worked in several EdTech startups in the Bay Area, and completed her Ed.M in Education from the Harvard Graduate School of Education. She is passionate about bringing the high quality personal finance content and instruction she wished she'd received in school to the next generation of students and educators. When she isn't crafting lesson guides or working with teachers, Sonia loves to spend her time singing, being outdoors, and adventuring with family and friends!