Hello,
I'm trying to pinpoint the cause of the decrease of our refund when comparing 2021 and 2022. I understand the pandemic tax breaks were no longer valid in 2022, but it seems strange to me that the decrease of our refund is so drastic. Our refund in 2021 was $1,900 but this year the TT software is calculating $311.
In 2021, our taxable income was approximately $42,000. In 2022, it was approximately $59,000.
In 2022, I worked full time at the same job. However, my husband changed jobs last year. At his new job on his W-4, he chose "married filing separately" by mistake. We've always filed married filing jointly. Could his mistake have contributed to the drastic refund reduction?
My husband received a 1099-R for an IRA withdrawal he made in 2022 for $2,500, and the "taxable amount not determined" box was checked. He paid taxes at the time, so he really only received about $2,100.
We have no kids, and no other special tax situations.
Any guidance as to why our refund decreased so significantly will be appreciated!
Many thanks.
