Tax Refund Calculator
See whether you're getting money back or writing a check — before you file.
You'll owe
$1,848
You paid in $8,500 against a $10,348 tax bill.
Full tax breakdown
- Total income
- $85,000
- Business expenses
- −$4,000
- Adjustments (½ SE tax, retirement, health)
- −$1,130
- Adjusted gross income
- $79,870
- Standard deduction
- −$16,100
- Qualified business income deduction
- −$2,974
- Taxable income
- $60,796
- Federal income tax
- $8,087
- Child tax credit
- $0
- Self-employment tax
- $2,261
- State tax
- $0
- Total tax
- $10,348
- Already paid in
- $8,500
Effective rate
12.2%
Share of total income paid in tax
Marginal bracket
22%
Rate on your next dollar earned
Estimate only, for the 2026 tax year. Uses the standard deduction unless your mortgage interest exceeds it, applies a flat state effective rate, and does not model every credit, phase-out, or local tax. Confirm with a tax professional before filing.
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What is the Tax Refund Calculator?
The Tax Refund Calculator estimates your total 2026 federal and state tax, then subtracts everything you have already paid in through W-2 withholding and estimated payments. The difference is your refund — or the amount you will owe when you file.
How is it calculated?
Enter your W-2 wages and the federal tax withheld from them, plus any 1099 or business income and the expenses you write off against it. The calculator applies self-employment tax, the qualified business income deduction, your standard deduction, and the child tax credit, then compares the total against what you have paid. Most refund tools ignore self-employment income entirely; this one handles W-2, 1099, or any mix of the two.
Worked example: a $85,000 year split between a job and a side business
- Add up the income
$65,000 in W-2 wages plus $20,000 of 1099 work, minus $4,000 of business expenses. Gross income is $85,000; net self-employment profit is $16,000.
- Self-employment tax comes first
The $16,000 of profit carries $2,261 in Social Security and Medicare tax. Half of that, $1,130, is deductible against income tax.
- Work down to taxable income
After adjustments AGI is $79,870. Subtract the $16,100 standard deduction and a $2,974 qualified business income deduction to reach $60,796 of taxable income.
- Apply the brackets
Federal income tax on $60,796 is $8,087. Add the $2,261 of self-employment tax and total tax is $10,348.
- Compare against what was withheld
Only $8,500 came out of the paycheck. $10,348 minus $8,500 leaves $1,848 owed, not a refund.
- The lesson
W-2 withholding is calculated as if the job is your only income. Side income arrives untaxed, so it quietly creates a balance due. The fix is quarterly payments or a revised Form W-4.
Why the same income produces a different result
| Situation | Total tax | Paid in | Result |
|---|---|---|---|
| All $85,000 from a W-2, normally withheld | $11,250 | $11,250 | About even |
| $65,000 W-2 + $20,000 1099 (this example) | $10,348 | $8,500 | $1,848 owed |
| Same, with $2,500 of quarterly payments made | $10,348 | $11,000 | $0 owed |
| Same, but $10,000 of expenses tracked | $8,519 | $8,500 | $19 owed |
Frequently Asked Questions
Why do I owe money when I had taxes withheld all year?
Withholding is computed from your W-4 as though that job is your only income. Any 1099, freelance, or investment income arrives with nothing withheld, and it stacks on top of your wages — often pushing part of your income into a higher bracket. In the example above, $8,500 was withheld against a $10,348 bill.
Is a big refund a good thing?
A refund means you lent the government money at 0% for up to a year. If you are consistently getting four figures back, filing a new Form W-4 with your employer puts that money in your paychecks instead. The opposite is also true: a large balance due can trigger underpayment penalties.
Does this calculator handle both W-2 and 1099 income?
Yes, including a spouse with a different mix. You can enter W-2 wages, withholding, 1099 or business income, and business expenses in any combination. Self-employment tax is charged only on the self-employed portion.
When will I actually get my refund?
The IRS issues most refunds within 21 days of accepting an e-filed return with direct deposit. Returns claiming the Earned Income Tax Credit or Additional Child Tax Credit are held until mid-February by law. Paper returns take considerably longer.
How accurate is this estimate?
It uses the official 2026 federal brackets, the $16,100 single standard deduction, and the $184,500 Social Security wage base. State tax is applied as a flat effective rate rather than a full state bracket table, and it does not model every credit or phase-out. Treat it as a planning estimate, not a filed return.