Does it seem right that last year I got back $1,560.00 and this year I'm only getting back $97.00?

[kayrmc]

This is for Federal taxes only.

[PhyllisG · Accepted solution]

There are several reasons that your refund is reduced. It was anticipated that individuals may fall within a certain realm of the Tax Reform laws that would result in a reduction of their tax refunds. The possibilities are:

1. Your paycheck's income tax withholding amount was less due to Tax Reform and the amount does not align with the yearly tax tables.

2. Your income tax rate has increased (e.g. rather than falling into the 22% percentile, you now are in the 24% percentile)

3. Elimination of dependent and personal exemptions

4. Elimination of some itemized deductions

5. $10,000 cap on the deduction for state income taxes, sales, and local taxes, and property taxes combined

Other factors could be that you are no longer eligible for certain credits and deductions because you have exceeded the income threshold for that particular item.