The traditional tax process makes planning for a refund or tax payment unpredictable. This is why Gusto partnered with april to offer Refund Estimator, a free tool to help employees better plan their taxes for more financial clarity. Estimator is a tool to better forecast next year’s federal income taxes, showing what an employee might pay or be refunded.1
Gusto has partnered with april to offer this free tool exclusively in the Gusto mobile app. Click here if you’d like to learn about our Automated Tax Filing tool with april.
Refund Estimator is available to active W-2 employees who meet all eligibility criteria (see the “Eligibility” section below).
This tool is exclusively available to active W-2 employees through the Gusto mobile app. 1099 contractors cannot access this feature.
Eligibility criteria include:
Follow the steps below to generate a free estimate of your federal tax refund for the current calendar year. You’ll be asked to share info on your filing status, additional income sources, and similar topics relevant to your tax refund.
Estimates and tax information are private between the employee, Gusto, and april—the information is not shared with your employer or the IRS.
If eligible, you will see the following information:
Once you complete april’s tax questions, your estimated refund will be displayed.
Remember: Tax estimates are for federal taxes only, made solely based on the information the employee provides, and may not provide a complete tax picture. Estimates should be used for planning and informational purposes only, and you still need to file your taxes with the IRS. When engaging in tax planning, you should also consider any applicable state or local income taxes.
Estimates are not automatic—if your tax-related circumstances change, follow the steps below to receive a new estimate.
If your tax-related circumstances change (like a change in income, marital status, or dependents) stock sales, or secondary education enrollment) after receiving a refund estimate, you can get a new estimate for the current tax year at any time.
If needed, update your withholding elections in Gusto. Updating your tax refund estimate does not change your tax withholding records in Gusto.
Here’s how to generate an updated estimate:
What is the Refund Estimator?
Gusto partnered with april to offer this free tool to help employees plan their taxes. Refund Estimator is a tool to forecast next year’s federal taxes, showing what an employee might pay or be refunded.1
How do these calculations work?
Refund Estimator uses Gusto's payroll data and april’s tax calculations to give federal tax estimates.
Remember, this tool is based on the information provided—actual tax liability results can vary.
How do I become eligible for Refund Estimator?
Refund Estimator is exclusively available to active W-2 employees through the Gusto mobile app. 1099 contractors cannot access this feature. Eligibility criteria include:
Where do I access Refund Estimator?
If eligible, this tool will be visible in the Pay tab of the Gusto mobile app.
Is it free to use Refund Estimator?
Yes. It’s a free benefit for eligible W-2 employees using the Gusto mobile app.
Does Refund Estimator work for state taxes?
No, Refund Estimator only focuses on federal taxes. So when engaging in tax planning, employees should also consider any applicable state or local income taxes, which may differ depending on where the employee lives and works. For any tax advice, consult with a tax professional.
Can I use Refund Estimator for previous tax years?
No. Refund Estimator is designed to project the next year’s refund. The tool works by using payroll data from the current calendar year.
Will using this tool change my withholding or paycheck?
No, the Refund Estimator is purely informational.
What should I do if my tax information changes?
If tax circumstances change, an update will be needed. Employees should make updates to their tax estimate and a revised forecast will be provided.
How does Refund Estimator impact my taxes with the IRS?
Refund Estimator will not impact your taxes with the IRS.
Can april or Gusto tell me what to select?
No, we cannot. Employees should seek tax and financial advice from a licensed professional.
1. Refund Estimate’s forecast may not be a complete tax picture and should be used for planning and informational purposes only. The estimate may not reflect changes to tax filing statuses and situation, tax law, or information not provided as part of Refund Estimator.