I'm confused why I'm only getting $11 back on my Kentucky refund? Every year I get around $200+. The only thing that has changed is I'm working more.

[VolvoGirl]

Yes more income means more tax and can reduce your refund.  Maybe your state withholding didn't keep pace with the increase in income.  Or someone will know about Kentucky.  Maybe the more you make you lose some credits or something.

[DanielV01 · Accepted solution]

It depends, however, you are likely seeing a decrease in the Family Size Tax Credit.  This is a credit that is especially helpful for KY families with lower income, particularly when there are several children in the family.  If your income in the past was lower, (and you have dependents), you may have qualified for an amount of Tax Credit (which can range from a 10% tax discount on your KY liability to a full 100% deduction).  Chances are that this year, your extra income disqualified you for any credit, and typically, KY withholdings are usually very close to what your KY tax liability will be.  

If you wish to comment your family size (you, spouse, and children living at home), I can give you an idea of how the Family Size Tax Credit may have specifically affected you personally.  (A general idea of income is also helpful)

[collectivesoul3]

I'm single and haven't any children. My mom still claims me on her taxes. $20,000 a year.

[VolvoGirl]

How old are you?  If you made more than $4,050 total income your mom can’t claim you unless you were under 24 and a full time student.

[DanielV01]

Whether or not she claims you does not matter for the Kentucky return.  KY does not have a special tax rate or exemption for someone claimed as a dependent.  However, if you had less income in a prior year, say about 14 to 15K, you would have received some Family Size Tax Credit even if you had no other dependents.  With 20K and no dependents you don't qualify for the credit, and, as I mentioned in my answer, KY tax withholding is usually very close to what your liability will be unless you have credits or larger deductions to help reduce your taxable income or tax.