What is a tax return estimate?

A tax return estimate is a prediction of how much tax you owe or are expected to receive back from the state of Virginia. It is an approximation of your final taxes owed or refund amount due to you. The estimate is calculated using the information you provide on the income tax return form that you fill out. For example, if your income, deductions and credits are known, then the Virginia tax return estimate will be based on those figures. It is important to note that a tax return estimate is not a guarantee of what you will ultimately owe or receive back, since the final figure is based on all the information you provide. It can also be affected by any changes later in the tax year. Since a tax return estimate is just an estimate, it’s always a good idea to use it as a guide, rather than an actual prediction of what you’ll owe or get back at the end of the year. The best way to use a tax return estimate is to use it as a starting point for understanding your tax situation. It can help you plan your finances and make sure you’re not caught off guard come tax season. As you plan for the year ahead, consulting a tax return estimate can ensure that you remain prepared for any financial surprises.

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