2024 Tax return extremely low

[EHV]

• Hello, I was on Turbotax earlier today and I was in the process of filing my taxes. But I'm very confused on my return, I made $28,833.18 in 2024 yet my refund is $53. Can anyone explain how or why this happened?

[xmasbaby0]

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.

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/...

Print out 2023  and 2024  and compare them side by side to see what is different. 

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

[EHV]

My only paperwork is the W-2, I know for a fact I have nothing else coming in.

My 2023 to 2024 are exactly the same because nothing changed in the time. I didn't get a loan, change my status, no pay raise or buy property. Now I did work more this year because in 2023 it was only 6 months at my job but now I've been there for a year and a half.

[xmasbaby0]

Maybe you received earned income credit last year?   But for 2024 you earned too much to get that credit?   You need to print your returns out from 2023 and 2024 and put them next to each other.  Compare the returns line by line to see what is different.  

[EHV]

I earned $14,595 from 2023. $13,850 was taxed because I am single. My taxable income came out to $745. $74 was my total tax because I do not have children. From $697, my earned income tax was $234 so it came out to $931. My return was $857 and it didn't show or say how it went from $931 to $857. 

I stopped on Turbotax as soon as I saw what my return was shown. I didn't continue because I'm confused how I went from $28,833 to $53 in refund.

[xmasbaby0]

No.    You misunderstood standard deduction.    Last year when you only earned $14, 495 your standard deduction of $13,850 meant that only $645 of your income was taxable.  The first $13,850 was "tax free."

For 2024, your standard deduction is $14,600 --- that means $14,600 of your income is "tax free" and the rest of that $28,833 is taxable.

More income = more tax

Your standard deduction lowers your taxable income. The standard deduction makes some of your income “tax free.”  It is not a refund.  You will see your standard or itemized deduction amount on line 12 of your 2024 Form 1040.

2024 STANDARD DEDUCTION AMOUNTS

SINGLE $14,600    (65 or older/legally blind + $1950)

MARRIED FILING SEPARATELY $14,600    (65 or older/legally blind + $1550)

MARRIED FILING JOINTLY $29,200    (65 or older/legally blind + $1550)

HEAD OF HOUSEHOLD $21,900    (65 or older/legally blind + $1950)

[VolvoGirl]

@EHV   Your 2023 and 2024 are not exactly the same.  You only worked 6 months in 2023 and a full year in 2024 so you 2024 W2 income is twice as much.  You made a lot more income in 2024.  More income = more tax and usually less refund.   Your withholding didn't increase enough to cover the tax due. Or some credits you got are reduced because you made more income.

[40622]

This is the exact situation I have. Literally nothing changed for me from 2023 to 2024. And my EIC is less than half of what was awarded last year. My refund is almost 3,000 less than last years, with zero changes. Maybe there is an issue with turbo tax calculations?

Side note. I own my home and state refund was about $500 but my boyfriend who rents is getting almost $2,000 back. 

I also earn more than double what he does and have 2 kids. His tax return is more than double mine with no kids. 

Seems like the best way to get a higher refund is to work part time. 

[EHV]

That sucks, I don't even have an EIC this time around. It was literally $0 because I didn't qualify for anything and i just got promoted two weeks ago, so part time isn't possible. I'm also single with no kids and pay rent, yet I'm only getting enough for gas that will last a week.