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What would cause a huge drop in refund? 2021 income: $23k (W2), $7k (1099). Refund so far: FED ($9k), STATE ($1k). After added unemployment($34k) FED refund now $1.4k.
Just looking for speculations. I have no idea besides either being in a higher tax bracket after adding unemployment or they took out more than %10 in unemployment income. I'm in ILLINOIS. I know income tax on unemployment is fully taxed (first $10k no longer exempt). But I thought it's like only up to %7 or %10. My FED refund was red$8k plus. I filled out my income in order of W2's, 1099's and Unemployment so I didn't do anything out of the ordinary. I already filled the EIC and Child Tax Credits prior.
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‎April 22, 2022
9:15 AM