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Level 1
posted Jan 23, 2022 8:28:49 AM

Does it make sense that I owe $600 in federal taxes this year but got a refund of $800 last year? I did make more money in 2021 for my W2 but my tax bracket's the same.

I dont have anything thats really different between my 2020 and 2021 filings besides making more money at my W2.

0 4 326
4 Replies
Level 15
Jan 23, 2022 8:36:55 AM

More income = more tax

 

Print out your 2020 and 2021 returns and compare them side by side so you can see what is different for this year.

 

https://ttlc.intuit.com/community/refunds/help/why-did-my-refund-go-down-compared-to-last-year-s/00/25993

Level 15
Jan 23, 2022 8:39:45 AM

Usually more income = more tax = 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.

Expert Alumni
Jan 23, 2022 8:49:53 AM

If your federal refund is lower than expected, it's because you didn't have enough federal income taxes withheld from your paychecks. Do a line by line review of your 2021 Form 1040 versus your 2020 Form 1040 to identify the difference or differences. See How do I preview my TurboTax Online return before filing? Also, see the information below. 

  • Tip: If your refund is wildly off, you may have mistyped a dollar amount somewhere. An extra digit here, a missing number there, even a misplaced decimal point can have an eye-popping (but easily correctable) effect on your refund.

If you didn't update your form  W-4 for 2021, it’s highly possible this is why you owe. If you'd like to get a bigger refund, complete a form W-4 for 2022 and have an additional withheld. You'll get less money in your paycheck but you'll get a bigger refund next year. 

 

We've got some other possible reasons for a year-over-year refund decrease:

Source: TurboTax FAQ

Level 15
Jan 23, 2022 9:43:03 AM

maybe maybe not. wore income more taxes but with a bigger w-2 more withholding.   we can't see your returns so we are guessing