If i paid a total of $249 in taxes total for my tax return last year, and got that much back last year. How come I pay $877 in taxes total this year, and I only get $99?

[kaylasway]

So when I did my taxes last year i got a total refund of $249 federal. This year I get a refund of $99 from federal. I paid more in federal taxes and still get less than I did the year before. When I started doing my taxes I got about 1k+ now for the passed 2 years it has been dwindling further and further the more taxes I pay due to working more and more every year. Now that I am settled in, in my new place of living I have finally a stable job and a stable sense of community. But this right here boggles my mind. Why do you get paid less in back taxes during tax season if you pay more in taxes during that year? This is not just a question for me but for some fellow coworkers as well that have been working just as hard as me and some have been working even harder than I have and they are getting paid even less than I am.

[xmasbaby0]

More income = more tax

No one can see your return

We cannot see your screen, your return or your account.  Have you entered ALL of your 2023 information?  All your income, etc.?  Many tax documents that you need do not arrive until late January or even February, so maybe you do not have it all there yet.

Lots of tax laws changed.  Those changes are resulting in lower refunds for lots of people.

There is no recovery rebate credit (stimulus $) for 2023.  The childcare credit is  less and is not refundable. The child tax credit is different and it is less.    And for some people, earned income credit is different because there is no “lookback” to an earlier year.  Those are some of the reasons your refund may be less.

There are a lot of variables that affect your refund or tax due including how much you earned, how much tax you had withheld, your filing status, the number of dependents you claim, your deductions and credits, etc.  You may have lost Earned Income Credit or the Child Tax Credit— did a child turn 17?  If you received the EIC last year, remember that changes in the amount you earn have a big effect on the amount of EIC you can get. (Sometimes earning more money means less EIC)  Are you 65 or older ?  If so, your standard deduction is higher. Everyone has a higher standard deduction now so it is harder to use itemized deductions.

And…..the child tax credit is very different for 2023    For 2021 you could get $3600 for a child under 6 or $3000 for a child between 6 and 17 even if you had no income/did not work.   That is NOT the way it will work for your 2023 tax return.  The “old” rules are back.   The maximum amount of the child tax credit is now $2000; the refundable “additional child tax credit” amount is $1600.   In order to get that credit, you have to have income from working.  The credit is calculated based on the amount you earned above $2500 multiplied by 15%, up to the full $1600.  If your child is older than 16 at the end of 2023, you do not get the CTC.  But you may still get the non-refundable $500 credit for other dependents instead.

And of course, always check your own data entries, looking for errors such as misplaced decimals or extra zeros.

https://ttlc.intuit.com/turbotax-support/en-us/help-article/tax-refund/refund-go-compared-last-year/...

Print out 2022  and 2023  and compare them side by side to see what is different. 

https://turbotax.intuit.com/tax-tips/tax-payments/video-why-would-i-owe-federal-taxes/L3VXudPiN

https://ttlc.intuit.com/community/refunds/help/why-did-my-refund-go-down-compared-to-last-year-s/00/...

[kaylasway]

That was even after I finished my taxes which it is still confusing to me it’s an all wide question just based on my own example. I didn’t work as much as I did this year last year due to when I did my taxes last year I just moved to this place but lived here at the end of the year, that I had to do my taxes than. Nothing really has changed I have used this app for about three to four years now, well not app but website. It’s a general wide question just wondering how it works in this way that I get paid more in back taxes the year before when I have not worked as much. 

[MinhT1]

Your tax refund isn't 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.