How does TurboTax determine the taxpayer's refund or tax owed?

TurboTax determines the taxpayer's refund or tax owed primarily by applying user-provided financial data to current tax rules and rates. This process involves users entering their income, expenses, and other relevant financial information, which the software then analyzes using the latest tax laws and regulations. By systematically applying these laws to the input data, TurboTax calculates the accurate tax liability or refund amount.

This method ensures that the calculations are tailored to each individual's financial situation, reflecting the nuances of their income and deductions. It also accounts for any applicable credits and adjustments, making the result as precise as possible based on the information provided. This approach is essential for taxpayers to understand their tax obligations and potential returns accurately.