Short Answer 
To calculate your tax refund, first determine your total tax liability by summing your taxable income and applying tax rates. Next, compile any tax payments or credits you made during the year, and finally, subtract your total tax liability from total tax payments using the formula: Tax Refund = Total Tax Payments – Total Tax Liability.
Step 1: Calculate Total Tax Liability
To determine your tax refund, start by calculating your total tax liability for the year. This involves assessing all your taxable income and applying the necessary tax rates to find out how much you owe in total taxes. Make sure to have documentation ready to accurately gather your income information.
Step 2: Determine Total Tax Payments
The next step is to compile any tax payments or credits you have made throughout the year. This includes withholding amounts from your paycheck, estimated tax payments you have submitted, and any tax credits you may be eligible for. Gather these figures to understand how much you have already contributed towards your tax bill.
Step 3: Calculate Tax Refund
Finally, calculate the tax refund by subtracting your total tax liability from your total tax payments. Use the formula: Tax Refund = Total Tax Payments – Total Tax Liability. For example, if Lily’s total tax payments were $1,080.50 and her total tax due was $190, her refund would be $890.50.