Trying to figure out why my federal tax return is so small compared to all other years

[jennamckay9]

I always get back around the same amount of federal tax return. This year it is significantly less. What is going on? I did make more money,. but I am in the same bracket. Nothing else changed

[JotikaT2]

It depends on a variety of factors.

You mentioned you earned more income in 2020, but you would need to review the amount of federal income taxes withheld from your earnings as well to see if it increased as well.

Also, was there a credit you were entitled to last year that you are not eligible for this year?

The change essentially depends upon the changes to your overall tax return from 2019 to 2020.  Any changes from year to year will impact your overall refund or tax liability when you file.

In TurboTax, you can view your tax summary for your 2020 tax return by doing the following:

1. Go into the black panel on the left and select Tax Tools. 
2. Then select Tools beneath Tax Tools. 
3. A "Tools Center" box will pop up, select "View Tax Summary" 
4. You will see a screen that gives a snapshot of your taxes based upon your input so far. 
5. Click on the black panel on the left bar and select Preview my 1040
6. This will allow you to review your overall line items on your federal tax return.  Compare these amounts to your actual tax return for 2019 to help you determine why there is such a large difference from year to year.

 After you review the above items, simply select "Back" in the black panel to get back to the interview forms. 

[jc_penny]

The Feds slipped in rule change last year that made your payroll deduction lower.  Compare total tax paid between years to see if they are significantly different.  Odds are that you got the rest of the refund each month in your paycheck...

[MaryM428]

In the search box on TurboTax type:

• Jump to eitc
• Click Jump to eitc link

That will take you to the page that explains if you are getting the Earned Income Tax Credit or will tell you why you do not quality this year.

EITC depends on your filing status, number of dependents, and amount of money you earned.  

Here are Facts About EITC