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HopeS
Expert Alumni

I worked a full year and my tax return is only $1. This doens't seem right, does anyone have any idea why my tax return is only amounting to this little? I'm v confused

Once you clear cache/cookies if nothing changes then revisit your Wages & Income section and make sure your income items and your federal withholding were all inputted correctly. A dollar amount mistyped can have a big impact on your refund.

 

The situations below are some of the most common reasons why you might be getting less money than you expected. For example, did you:

  • Adjust your withholding to maximize your take home pay
  • Receive unemployment benefits, but didn’t have taxes withheld
  • Earn little or no income, and didn’t qualify for the Earned Income Credit (unfortunately, unemployment doesn't count as earned income)
  • Complete a W-4, which more closely matches your tax liability
  • Sell stock
  • Take an early withdrawal from your retirement account
  • Pay less tuition due to school closures, so you can’t deduct as much

.

To maximize your refund next year, invest, and/or pay taxes you might owe, consider some of these options:

  • Amend your W-4 to increase the amount of withholdings for a higher refund next year; or
  • Instead of withholding more, put that same amount into a savings account, an IRA, or other tax-sheltered vehicles 

 

Below is a helpful guide regarding changes in refunds compared to the prior year.

 

Why did my refund go down

 

@derprotax

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I worked a full year and my tax return is only $1. This doens't seem right, does anyone have any idea why my tax return is only amounting to this little? I'm v confused

Somethings fishy! I mean... I have never had a return For just $1 until this year. I've had the same job since 2013 basically. In 10 years of taxes.... honestly...

PattiF
Expert Alumni

I worked a full year and my tax return is only $1. This doens't seem right, does anyone have any idea why my tax return is only amounting to this little? I'm v confused

This year, several tax credits have been lowered to amounts before the coronavirus pandemic--or eliminated entirely. This includes the Child Tax Credit, the Child and Dependent Care Credit, and more. Check if these changes are why your refund is lower.

There are other events unrelated to the pandemic that may reduce your refund, including:

  • Starting an additional job (especially self-employment)
  • Getting a significant raise, but your W-4 staying the same
  • Adjusting your withholding to maximize your take home pay
  • Selling stock, crypto, or other investments
  • Filing status changed
  • Receiving unemployment benefits, but not having taxes withheld
  • Taking an early withdrawal from your retirement account
  • Having a child turn 17 in 2022, now receiving the Credit for Other Dependents instead of the Child Tax Credit
  • Started receiving Social Security benefits or Roth IRA distributions
  • Paying off your mortgage, so you can no longer deduct mortgage interest
  • Paying off your student loan, so you can no longer deduct the interest
  • Finishing school, so no longer eligible for certain education credits
  • Earning little or no income and not qualifying for the Earned Income Credit

If your refund is wildly off, double-check the amounts you entered. A typo of just one dollar can have a big impact on your refund.

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I worked a full year and my tax return is only $1. This doens't seem right, does anyone have any idea why my tax return is only amounting to this little? I'm v confused

I am with you on this.  I just deleted a form which changed my taxable income by over $10K and my refund did not budge from $1.  I have used not only different browsers but different computers altogether and they all keep showing $1 refund regardless of changes I make to values within my return.   I think this is an issue with TT. 

Vanessa A
Expert Alumni

I worked a full year and my tax return is only $1. This doens't seem right, does anyone have any idea why my tax return is only amounting to this little? I'm v confused

I am not aware of any issue with TurboTax that would show you $1 refund, however, you can look at your 1040 to see if things are changing as you make changes.

 

To do this click the following:

  • Tax Tools
  • Tools
  • View Tax Summary
  • Preview My 1040

When looking at your 1040 pay close attention to the following lines:

  • Line 1 is your income entered from your W-2's
  • Line 15 is your taxable income.  This consists of your total income minus your standard deduction which if you are single is $12,950.
  • Line 16 is your Tax based on the number on line 15
  • Line 25 is the amount of taxes your employer withheld from your wages.  If your employer did not withhold enough, this would be the biggest reason you have to pay in. 
  • Line 37 is the amount you owe. 
     

 You can go back and forth when making changes to your return.  It would be a good idea to write these numbers down as you change your entries.

 

One thing to note, depending on the type of income you deleted, if it was not taxable income, it would not make a change.  But, if you re-enter it and look at the forms and see a change, then the forms are correct and its possible that it is just a refund button issue. The refund meter does not affect your return in any way, it is just for you to watch as you make changes.  The forms are what are important. 
 

 

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I worked a full year and my tax return is only $1. This doens't seem right, does anyone have any idea why my tax return is only amounting to this little? I'm v confused

the revolution starts now

HopeS
Expert Alumni

I worked a full year and my tax return is only $1. This doens't seem right, does anyone have any idea why my tax return is only amounting to this little? I'm v confused

Your refund in TurboTax is based on the information you entered from your W-2.  First review your entry to make sure you capture your W-2 correctly.

 

Another reason could be your income tax withholding which is solely based on how you complete your Form W-4. This is the Employee's Withholding Certificate, from which your employer determines your rate of tax withholding. The amount that gets withheld is based on the information that you provide regarding income, credit, and deductions along with any additional tax you wish to withhold. The IRS recommends that you complete a new W-4 annually or whenever your life circumstances change, to prevent having tax deducted at an unrealistic rate. If you regularly owe taxes when you file your return, or if you have other income sources or deductions that may affect your tax rate, adding an additional withheld amount on your W-4 may put you in a refund position or keep you from owing too much.

 

The article below which will help you understand your Tax Refunds.

 

Understanding Your Refund

 

Why is the refund not what I expected

 

@derpotax 

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