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My numbers dont add up. I nearly got the same amount last year from working at mcdonalds. I get better checks & commission from charter how come my return is so low

 
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1 Reply
MinhT1
Expert Alumni

My numbers dont add up. I nearly got the same amount last year from working at mcdonalds. I get better checks & commission from charter how come my return is so low

Your tax refund is not at all proportional to your income. It depends on your income, your deductions and other tax credits, your tax liability and the amount of tax withheld.

 

The tax withholding tables are designed so that you pay enough tax as you earn so that your refund or your tax due is as close to 0 as possible. In fact, if you have a large refund at tax time, this means that too much has been withheld from your paychecks during the year.

 

Also in 2022, your refund may be lower because some tax laws have changed:

 

1. The Recovery rebate credit (for stimulus payments) no longer exists

 

2. The increased Child tax credit for 2021 has reverted the old amount ($1,500 for each child under age 17)

 

3. There is no lookback provision for the Earned Income credit.

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