topic Why is my estimated refund $2 in Get your taxes done using TurboTax

Why is my estimated refund $2

Cachelubanski — Tue, 31 Dec 2024 21:23:07 GMT

I am very confused. I grossed a little over $36,000 this year, I have no kids, for paycheck withholding I didn’t claim any extra withholdings, and no known debt that could be garnished. Last year I got $600 at least for a refund. I did have an increase in income from $20,000 last year to the above this year. I also got divorced but have been filing separately for 4 years. Why is my estimated refund $2? I don’t understand.

Re: Why is my estimated refund $2

xmasbaby0 — Tue, 31 Dec 2024 21:36:32 GMT

We cannot see your screen, your return or your account. Have you entered ALL of your 2024 information? All your income, etc.? Many tax documents that you need do not arrive until late January or even February, so maybe you do not have it all there yet. Employers have until January 31 to issue W-2's; banks, brokerages, etc. will issue information and 1099's by late January/early February.

There are a lot of variables that affect your refund or tax due including how much you earned, how much tax you had withheld, your filing status, the number of dependents you claim, your deductions and credits, etc. You may have lost Earned Income Credit or the Child Tax Credit— did a child turn 17? If you received the EIC last year, remember that changes in the amount you earn have a big effect on the amount of EIC you can get. (Sometimes earning more money means less EIC) Are you 65 or older ? If so, your standard deduction is higher. Everyone has a higher standard deduction now so it is harder to use itemized deductions.

And of course, always check your own data entries, looking for errors such as misplaced decimals or extra zeros.

https://ttlc.intuit.com/turbotax-support/en-us/help-article/tax-refund/refund-go-compared-last-year/L97JmhUbi_US_en_US?uid=ld9ijm41

Print out 2023 and 2024 and compare them side by side to see what is different. You say your income increased----did you increase your withholding amount? And....you say you are now divorced---so that means a change in filing status to Single.

https://turbotax.intuit.com/tax-tips/tax-payments/video-why-would-i-owe-federal-taxes/L3VXudPiN

https://ttlc.intuit.com/community/refunds/help/why-did-my-refund-go-down-compared-to-last-year-s/00/25993

Re: Why is my estimated refund $2

taxlady28 — Tue, 31 Dec 2024 21:45:16 GMT

No one here can see your taxes or tell you why you are not getting a refund.

Re: Why is my estimated refund $2

Mike9241 — Tue, 31 Dec 2024 23:16:49 GMT

under ideal conditions, since you had nothing extra withheld, your withholdings should come extremely close to your tax liability and thus only a small refund or balance due.

Re: Why is my estimated refund $2

xmasbaby0 — Tue, 31 Dec 2024 23:27:19 GMT

And....since you have no children you are not eligible for any of the refundable child related credits. You earned too much to get earned income credit. A refund that is derived from just the tax that was withheld from your paychecks is a refund of your money---if you get a big refund from having tax withheld it just means you gave the government an interest free loan all year.

Re: Why is my estimated refund $2

VolvoGirl — Tue, 31 Dec 2024 23:30:45 GMT

And the 2024 program is not fully ready yet. There will be many updates. Maybe your refund will change. And if you got divorced in 2024 you should file as Single, which should give you a better refund than MFS. And another thing, more income = more tax and usually less refund. It could be your withholding didn't keep up with the increase in income.