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RainyO
New Member

WHY DID MY FEDERAL TAX REFUND DECREASE FROM $1200 TO $200 WHEN I DEDUCTED MY MORTAGAGE INTEREST ($9000) AND PROPERTY TAXES ($2600)?

 
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Marketstar
Level 7

WHY DID MY FEDERAL TAX REFUND DECREASE FROM $1200 TO $200 WHEN I DEDUCTED MY MORTAGAGE INTEREST ($9000) AND PROPERTY TAXES ($2600)?

When you enter an expense, and lower your taxable income, your eligibility for certain credits such a the Earned Income Credit, and Child Tax Credit may be reduced or eliminated thus lowering your refund meter reading.

The more information you enter, the more accurate the refund meter will be, and will not be totally accurate (and thus truly meaningful) until you have entered all of your information including all income and expense/deductions.

In other words, do not concern yourself with the refund meter until you have completed your return. If at that time, your find your result of concern, we will be glad to address it with you.


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Marketstar
Level 7

WHY DID MY FEDERAL TAX REFUND DECREASE FROM $1200 TO $200 WHEN I DEDUCTED MY MORTAGAGE INTEREST ($9000) AND PROPERTY TAXES ($2600)?

When you enter an expense, and lower your taxable income, your eligibility for certain credits such a the Earned Income Credit, and Child Tax Credit may be reduced or eliminated thus lowering your refund meter reading.

The more information you enter, the more accurate the refund meter will be, and will not be totally accurate (and thus truly meaningful) until you have entered all of your information including all income and expense/deductions.

In other words, do not concern yourself with the refund meter until you have completed your return. If at that time, your find your result of concern, we will be glad to address it with you.


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