This article was updated for Tax Year 2023, last edited on January 12th, 2024.
Estimation Coverage
What are april Estimator and april Optimizer?
april Estimator. Estimator is a tool to help you forecast your potential federal refund and federal taxes. It is best suited for individuals who earn the majority of their income domestically through a direct employee relationship (i.e., Form W-2) or as an independent contractor (i.e. Form 1099). This product is available year-round and can be used multiple times throughout the tax year whenever there’s a life event that could impact taxes owed (such as a marriage/divorce, a change in employment or income, etc). For coverage details and other important legal information about Estimator, you can read more here.
april Optimizer. Like Estimator, Optimizer includes an interview process to help you forecast your potential federal refund and federal taxes. However, it also allows you to see how adjusting your paycheck withholding (based on your federal estimate) can impact your paychecks and tax planning. Optimizer then allows you to easily act on these choices, adjusting the values for an IRS Form W-4 based on these decisions. Like Estimator, Optimizer is available year-round and can be used multiple times throughout the tax year, such as whenever there’s a life event that could impact taxes owed. For coverage details and other important legal information about Optimizer, you can read more here.
How can I use april Estimator or april Optimizer?
april is primarily made available through third party partners such as banks, investment platforms, and other financial services companies.
Which tax use cases does april Estimator and april Optimizer support?
The estimation process is best suited for users who earn the majority of their income through a direct employee relationship (W-2) or as an independent contractor (1099). This tool covers questions related to wages, capital gains, dependents, family situation, education & home in order to generate an estimate. If a user has extenuating circumstances or has substantial non-traditional forms of income, the Estimator may not be best suited for them today.
The Estimator takes a variety of federal tax credits and deductions into account when creating an estimate. These include, but are not limited to:
Standard Deduction
Child Tax Credit
Earned Income Tax Credit
Dependent Care Credit
Capital Gains treatment
American Opportunity and Lifetime Learning Credit
Qualified deductible expenses
For coverage details and other important legal information about Estimator, you can read more here.
Does the estimation process provide tax estimates for federal and state taxes?
Currently the Estimator and Optimizer provide estimates for federal taxes. When engaging in tax planning, users should also consider any applicable state or local income taxes (which may differ depending on where the user lives and works).
Using Estimator and Optimizer
Will april Estimator or april Optimizer report my estimate to the IRS or other tax authorities?
No, april Estimator and april Optimizer will only share the tax estimate with you, your referring financial institution or payroll provider (whoever provided your access to april), and april.
If I use april Estimator or april Optimizer, do I still need to file taxes with the IRS?
Yes. april Estimator and april Optimizer are tax tools for planning and informational purposes only.
This content is provided for informational purposes only and should not be construed as tax, legal, financial, accounting, or other advice. Rules and regulations vary by location and are subject to change, so please consult with an expert if you need advice specific to you.
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