If you are questioning the amount of your refund you can go through and double check some of these things.
There are three factors that will determine the size of your refund (or what you owe).
- The total amount of income that you have.
- The amount you had withheld from your wages.
- Whether you qualify for certain tax credits.
Your income determines the amount of tax you owe. This not only includes your wages, but also any other type of income you may have had. A small job that issued a 1099 MISC or NEC can result in significant taxes. Based on criteria established by the IRS there are tables that determine the amount of tax that you owe. Double check your income entries and make sure they are correct.
The amount you had withheld generally come from your W-2 income; however, taxes can be withheld from other forms of income. If the taxes withheld is more than what you owe you will get a refund. If not, you will owe money. Again, double check your entries and be sure they are correct.
You can subtract Tax Credits from the amount of tax you owe. Here are some common Credits:
If you look on your tax return FORM 1040 you can check these entries.
- Line 27 Earned Income Credit
- Line 29 American Opportunity Credit (For College)
- Line 30 Recovery Rebate Credit
Compare your tax credits to what you had last year. This is the most likely place for a large amount to be.
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