If your federal refund is lower than expected, it's because you didn't have enough federal income taxes withheld from your paychecks. Do a line by line review of your 2021 Form 1040 versus your 2020 Form 1040 to identify the difference or differences. See How do I preview my TurboTax Online return before filing?. Also, see the information below.
- Tip: If your refund is wildly off, you may have mistyped a dollar amount somewhere. An extra digit here, a missing number there, even a misplaced decimal point can have an eye-popping (but easily correctable) effect on your refund.
If you didn't update your form W-4 for 2021, it’s highly possible this is why you owe. If you'd like to get a bigger refund, complete a form W-4 for 2022 and have an additional withheld. You'll get less money in your paycheck but you'll get a bigger refund next year.
We've got some other possible reasons for a year-over-year refund decrease:
Source: TurboTax FAQ
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