Federal Refund

[tp2713]

Last year, we got a Federal return of over $2k.  This year we are looking at about $700.  Our situation hasnt really changed.   We made about $10k more, paid less in mortgage interest, but more in property taxes.  And somehow this year we got slotted for the standard deduction, where last year we benefited from the Itemized deduction.   Why such a big difference in the returns?

[JeffreyR77]

It depends.  It is difficult to say without seeing your specific numbers. 

You can estimate your change at your tax rate times the $10K increase in income accounts for at a minimum $1,000  at 10%. 

Your increase in property taxes likely had no impact on your itemized deduction total as taxes are capped at $10,000.  You likely were at that limit last year so the increase this year had no change on your itemized deduction total. 

Your decrease in mortgage interest is what coupled with any decrease in charitable giving would have reduced your itemized deduction total to be below the standard deduction for your filing status. 

You said you benefited from your itemized deductions being higher last year.

The increase in tax on your higher income and the reduction from the standard deduction should show you why you have a smaller refund this year.

[tp2713]

Is there a TurboTax service available to review our Return in detail and what is the cost for that?   

Thanks!

Todd

[PattiF]

Here is a link to information about the cost of a review for your tax return.