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430tay
New Member

My source of income changed by a few dollars from 2020 to 2021. why would my fed refund more then double for 2021?

 
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JamesG1
Expert Alumni

My source of income changed by a few dollars from 2020 to 2021. why would my fed refund more then double for 2021?

It is possible to report exactly the same income from one year to the next and the refund / balance due would change because:

  • Federal tax withholding increased or decreased after a change of jobs or a change of payroll companies at the same job.
  • Income is subject to capital gains treatment instead of ordinary tax rates.
  • No longer qualifying or newly qualifying for a tax credit or deduction.
  • The age or income of a dependent affects a tax credit or deduction.
  • Qualifying under a different filing status.
  • Qualifying / not qualifying for a Recovery Rebate Credit.

 

 

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My source of income changed by a few dollars from 2020 to 2021. why would my fed refund more then double for 2021?

Look at your 2020 and 2021 returns side by side.  Something may stand out.  Also check for any data entry errors, especially commas and decimal points.

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