topic Re: Why is my refund so low this year. I made 60% more in Get your taxes done using TurboTax

Why is my refund so low this year. I made 60% more

poriordan93 — Fri, 07 Feb 2020 17:04:04 GMT

Re: Why is my refund so low this year. I made 60% more

KurtL1 — Fri, 07 Feb 2020 17:24:14 GMT

We are unable to see your return to provide any specific reason. A lower refund can be caused by decreased withholding percentage in relation to the increase in wages and a decrease in tax credits due the age of the children or increase in income.

Re: Why is my refund so low this year. I made 60% more

sherrill0718 — Fri, 07 Feb 2020 17:49:45 GMT

No one can tell you why exactly except your own tax adviser. The most likely reason for the lower refund with higher income is your tax bracket changed. The more money you make the higher your tax bracket in most cases unless you have new qualifying deductions. You can read some of this information on the IRS website. A very informative publication is Business Insider. I am not a tax adviser. I have however been filing my taxes for the past 31 years without one and took several college classes specifically in accounting and I can tell you that as my income went up or deductions changed, by refunds changed with them. Your specific question, barring no change in your deductions, lends to the answer that you are now in a higher tax bracket than last year. This is a good thing, it means you made more money. YAY! And now pay more in taxes. One other notable reason I see is our income tax deductions are lower from our paychecks. This lowered our taxes, increased our take home pay and in turn lowered our refunds. This occurred in the previous tax year not this tax year.

Re: Why is my refund so low this year. I made 60% more

ReginaM — Fri, 07 Feb 2020 17:58:50 GMT

There could be a couple of reasons that you are less in taxes this year.

Back in 2018, the IRS reduced the amount withheld from employee paychecks so people had more take home money. This was done because the IRS did away with the personal exemption and increased the standard deduction. The net affect of this has lowered the amount of refunds realized by the taxpayer.

You may want to verify that you entered everything into TurboTax correctly by following these steps:

Select Tax Tools on the left hand side of your screen,
Select Tools,
Select View Tax Summary,
Select Preview my 1040 on the left hand side of your screen.