Taxable Refund and Recovery Calculator

 
Current Tax Year: Taxpayer's Name:

Instructions

This calculator is an implementation of Pub 525 Worksheet 2 with footnote limits applied.
Previous year information is entered on the left, current year information is entered on the right.
Values in the fields are not recognized until you tab or click out of the field.
  1. Enter refund amounts for the current year.
    • Refunds which include estimated payments made in the current tax year will be allocated between the prior and current years per Pub 525.
    • If the filing status was MFJ and is different for the current year, refunds must be shared with the person filed with in the previous year based on who paid the amount deducted. Enter only this taxpayer's amount.
  2. Enter filing information to determine the standard deduction for the previous year.
  3. Enter previous year Schedule A information.
    • If the sales tax amount is not shown on the previous year return printout, use the IRS sales tax calculator to determine the amount.
  4. Resulting taxable amounts are shown for the current year.
  5. If an amount is taxable, you are then prompted for a possible unused tax credit test.
    • If the tax after credits were applied is non-zero, there are none; enter 0.
    • If you don't have access to an electronic version of last year's return, enter 0.
  6. If there was an estimated state tax payment made in the current tax year for the previous tax year, a pro-rated portion of the refund is considered a "prepaid" refund for the current tax year and thus must be subtracted from estimates and withholding for the current tax year.
Taxability on refund amounts are determined by entries on the previous year return which include:

Filing information for prior tax year ()

Filing Status: Must itemize
TP 65 or older
TP was blind
SP 65 or older
SP was blind
Standard deduction:

Taxable income (1040 line 43)

If Taxable income (1040 line 43) shows 0, enter lines 41 and 42 to calculate a possible negative Taxable income
   1040 line 41:
   1040 line 42:
43. Taxable income (may be negative):

Schedule A information

5a State & Local Income taxes:
5b General Sales taxes:
Other amount used, if refunded:
Total itemized deductions:

Estimated state tax paid in

Estimated state income tax paid in :

Unused tax credits

HINT: Was tax after nonrefundable credits (1040 line 56) zero?
Enter the max amount of taxable income added that resulted in no change in the tax refund or amount due:

Return information for current tax year ()


Refund amounts

State refund amount:
   Amount allocated to :
   Amount allocated to :


Sales tax refund amount:
Other recoverable amounts:

Taxable amounts

Taxable amount of refund:
1040 line 10
(TS Income > State and Local Refunds > Bypass worksheet line).
0
 
Taxable amount of sales tax & other:
1040 line 21
(TS Income > Other Income).
0
Please send corrections and suggestions to jeff@bogarthome.net