I had a $300 refund due, then I entered my property tax of $2500 and SOMEHOW my refund due decreased by $180... to $120. How is this possible?

adzimmer · ‎February 3, 2022

xmasbaby0 · ‎February 3, 2022

Please check to see if the words under the amount you are seeing are "Tax Due"----is that what it actually says?

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

adzimmer · ‎February 3, 2022

Oddly enough it said I have a $300 refund due (not taxes due) and then I watched it actually go down after entering my property tax. Really not sure why...

MinhT1 · ‎February 8, 2022

One probable explanation would be that property taxes entered would decrease your AGI and cause a decrease in the Earned Income credit.

The Earned Income Tax credit (EITC) is a bell shaped curve against income. The EITC rises with income until a certain level of income when it starts to decrease to reach 0 at the maximum level of income for the category.

As an example, please look at the EITC tables from page 33 of this IRS publication.

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I had a $300 refund due, then I entered my property tax of $2500 and SOMEHOW my refund due decreased by $180... to $120. How is this possible?