Federal Refund

[Ulises10881_]

I’ve been using Turbo Tax for the past years so I can E-file without any hassle. Last year on 2020 I made about 13,000 dollars in income. After I filed my refund amount was about 7,000 dollars. My tax credits came mainly from my child and the Earned Income Tax Credit. I’m wondering if it’s correct considering my last year’s refund amount was only $655.

[AlanT222]

Your refund seems a little high for the stated income and one child.  

The earned income credit for one child  with $13,000 of earned income is around $3,600.  The refundable portion of the Child Tax Credit would be $1,400.  Total credits would be around $5000.  

The extra refund is coming from the Recovery Rebate Credit (Stimulus Payment)  You must make sure to complete 1040 Worksheet 8 to account for the stimulus payments you received last year. 

If you did not receive a stimulus payment last year then the refund amount you stated would be accurate.  If you did receive the payments, the amount of the refund will decrease once you account for the payments you received.  

[smith2day]

I'm no tax expert by any stretch, but based on your income, CTC and EIC, if you take the standard deduction it will reflect that you should've paid close to zero in Fed taxes; definitely less than you obviously paid.  Just more of that crazy tax math...lol.  Did you earn more the previous year?  Did you receive the CTC, EIC and take the standard deduction LY?  Sometimes it helps to look at the years closely, side by side.

[ThomasM125]

@AlanT222 is correct, the credits would be about $5,000. You would be due a stimulus payment of up to $2,900 if you haven't already received all of that. So, the $7,000 may be correct.