I made $7,753 dollars last year and this year I made 35,789 and I’m getting less back this year then last year. Why am I getting less back?

user020606171994 — Thu, 06 Jun 2019 06:07:44 GMT

The amount of your refund is determined by the difference...

TomD8 — Thu, 06 Jun 2019 06:07:44 GMT

The amount of your refund is determined by the difference between the amount of tax you owe and the amount of tax you already paid via withholding and/or estimated tax payments. It is not determined by how much you make.

In the "old days", the income tax filing process was abou...

Hal_Al — Thu, 06 Jun 2019 06:07:46 GMT

In the "old days", the income tax filing process was about paying taxes and/or getting back your own over withholding.

Today, it's more about "refundable" credits ; essentially government handouts. The primary one being the "Earned Income Credit" (EIC or EITC).

The basic EIC works on a "bell curve," rising as a worker's wages rise reaching a maximum when annual earnings are between $14,000 and $18,350 (Single with 2 or 3 children 2018) and then declining gradually until it phases out altogether. If your income is on the up slope of the EIC curve more earned income will increase your EIC but if your income is on the down slope, more income (of any kind) will reduce you EIC. The “upslope" on the EIC curve is very steep; basically for every $3 you earn, the government gives you another dollar. See the curve (graph) at:

http://www.taxpolicycenter.org/briefing-book/key-elements/family/eitc.cfm

The earned income credit is first calculated (actually looked up in a table) on your earned income then it is calculated on your total income (AGI). You get the lesser of the two calculated EIC numbers. See the 2018 EIC table at:

https://taxmap.irs.gov/taxmap/instr/i1040gi-015.htm

topic I made $7,753 dollars last year and this year I made 35,789 and I’m getting less back this year then last year. Why am I getting less back? in Get your taxes done using TurboTax

I made $7,753 dollars last year and this year I made 35,789 and I’m getting less back this year then last year. Why am I getting less back?

The amount of your refund is determined by the difference...

In the "old days", the income tax filing process was abou...