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btata3
New Member

Can you explain why my state refund is so much lower then last year.

 
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5 Replies

Can you explain why my state refund is so much lower then last year.

Without access to your tax return, and without know which state you are from, it is impossible to say for certain. There are just so many variables and many state tax credits were changed. 

To determine how TurboTax calculated your tax return, and to see why certain credits and deductions may not have been applied, 
·       Go to Review
·       Scroll down to explain how
·       Click How Did You Calculate

I will also suggest reading this article: Why is My Tax Different


Lecora
New Member

Can you explain why my state refund is so much lower then last year.

Unfortunately, that info regarding the calculations only work for Federal; there is no calculations for State under Review. It's possible that info isn't available for my state of Louisiana if you see that option when you do your taxes.

 

I'm trying to calculate why my state is half compared to the last 2 years but it could be my state doesn't like to refund as much (I learned during my first year when I moved here).

CatinaT1
Employee Tax Expert

Can you explain why my state refund is so much lower then last year.

Without looking at your return it is impossible to know why.

 

These are the most common things that effect your refund or balance due:

  • Change in Filing Status;
  • Change in dependents claimed;
  • No longer have a child, under age 17, to claim the Child Tax Credit
  • The amount of federal and/or state withholding;
  • Income based credits, such as the Earned Income credit;
  • Tax bracket changes

 

Here is a TurboTax Help Article that will give you more information..  

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Can you explain why my state refund is so much lower then last year.

Because Oregon is one of six states that is taxing the pandemic stimulus checks we received.  Doesn't make sense and according to the Gov't they state that it can't be changed unless it goes before some board.  BS if you ask me.  Yes, on one hand it helps the state but that isn't what these checks were for, it was to help families.  And please don't tell me well, it's because Oregon doesn't have sales tax.  Oregon residents pay some of the highest gasoline tax, property tax, etc.  Yet the road are horrible, property taxes continue to hit all times highs and Gov't want to increase property taxes to where people won't be able to afford their homes anymore.  Come on Oregon . . . "

Last year’s federal stimulus payments will generate $112 million in additional Oregon taxes because of a quirk in state tax law.

The taxes will hit 877,000 Oregonian taxpayers, about half of all those who received federal stimulus payments in 2020 and early in 2021, according to the state."

HelenC12
Expert Alumni

Can you explain why my state refund is so much lower then last year.

@btata3

 

One of the main reasons your state income taxes may be higher in 2020 versus 2019 is because you didn't pay in enough state income taxes, from your paychecks, to cover the taxes based on your income (earnings). In other words, your 2020 State Tax Withholding may be lower than 2019.

  • Contact your Human Resources or payroll department to see how you can adjust your state withholding so your state taxes aren't so high. .

 

There may be several other factors that go into you paying so much more in 2020 versus 2019. The following are some suggestions to help you find the reason why.

 

  • Double check the amounts you entered into TurboTax to make sure they were entered correctly.
  • Do a state income tax return line by line comparison to see what is different this year versus last year.  
  • Your 2020 State Tax Withholding was lower than 2019.  
  • You deferred less income into your Employer-Sponsored Retirement Plan or Flexible Savings Plan.
  • You didn't qualify for a tax credit you received last year (or the credit amount decreased).
  • You removed a dependent.
  • You changed your filing status.
  • If you itemize, your Itemized Deductions are lower this year. or the standard deduction is lower.

 

To pay your state income tax amount due, see the following: 

  • Although a growing number of states offer direct-deposited refunds and/or let you pay your taxes with direct debit, not all states offer this. 
  • When you get ready to file your state return, we'll let you know which tax refund and tax payment options your particular state offers. 
  • You can also visit your state's website or contacting your state Department of Revenue for more information.
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