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Last year’s fed taxes withheld was $17,600, I got a $905 return. This year I had $25,000 withheld and only a $333 return. Does this mean I’ve done my taxes incorrectly?

My filing status has not changed. All that is different is I’ve moved from Oklahoma to Florida, but that would only change my state tax return.
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2 Replies
Vanessa A
Employee Tax Expert

Last year’s fed taxes withheld was $17,600, I got a $905 return. This year I had $25,000 withheld and only a $333 return. Does this mean I’ve done my taxes incorrectly?

No, it does not necessarily mean you did something incorrectly.  If you had almost $8,000 more withheld, it sounds you like had a large increase in wages?  If you did, then this would increase the amount of your tax liability as well.  Your increased tax liability was not necessarily in direct proportion to your amount withheld meaning, if your taxes withheld went from $17,600 to $25,000, your liability did not go from $16,695 to $24,095.

  With the small difference in your refund in relation to the amount withheld, it is not likely that this is an error, but, it never hurts to double check your entries to be sure you did not make an entry error.

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Last year’s fed taxes withheld was $17,600, I got a $905 return. This year I had $25,000 withheld and only a $333 return. Does this mean I’ve done my taxes incorrectly?

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. 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.


Why did your refund go down this year?
https://ttlc.intuit.com/turbotax-support/en-us/help-article/tax-refund/refund-go-compared-last-year/...

  

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