I have $77 extra withholdings taken from my paycheck twice per month. Last year I did not do this and my refund was 950. This year I'm getting under 200. How??

[tommy-o-7784]

Income this year was very close to the same as 2023. Where is my money I had withheld all year?

[VolvoGirl]

Are you sure you made the same income this year?  All the withholding should be in W2 box 2.  

Nothing is the same as last year. There are many differences. If you have kids they are a year older. That can make big changes. Also the tax laws and brackets might have changed. The withholding tables change each year. Each year is separate. And another thing, more income = more tax and usually less refund or more tax due. It could be your withholding didn't keep up with the increase in income.

You have to compare this year with last year’s return LINE BY LINE and see what changed. Maybe you’ll spot something you left out or entered wrong. Common things are leaving the decimal point out or typing a comma for a decimal point, or typing an extra digit. Getting the wrong taxable amount on a 1099R entry or entering the 1099R wrong and getting hit with a penalty. Missing the qualified dividends in 1099-DIV box 2a. I could go on and on.

[LindaS5247]

There are several reasons why your refund may be less this year even though you made a similar amount of money.

These include:

1. Calculation error. You should check your W-2's and make sure they were entered correctly.
2. You worked multiple jobs.  This often results in a lower refund because your withholding for each job is based on working only one job, therefore your withholding is not enough.
3. You got a significant raise but did not increase your withholding. (You should adjust your Form W-4 when your pay changes significantly)
4. You had a change in filing or marital status. 
5. You took an early withdrawal from a retirement account.  This would have a penalty.
6. Your child's age no longer qualifies you for the Credit for Other Dependents or the Child Tax Credit
7. You paid off your mortgage and no longer have the deduction for mortgage interest
8. You paid off student debt so you no longer have the interest deduction
9. You had less medical expenses
10. You had a change in filing status
11. The tax brackets changed in 2024 due to inflation, which may pushed you up to a new higher  tax bracket 

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