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New Member
posted Feb 9, 2021 4:29:57 PM

Why am I not getting more on this years refund then last years and I worked way more

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2 Replies
Employee Tax Expert
Feb 9, 2021 6:03:31 PM

If you worked more and made more income, it is possible that you are in a higher tax bracket. It is also possible that you lost credits due to a higher amount of income. 

 

Additional reasons for decreased refunds are:

  • Less income tax was taken out of your earnings
  • You were in a higher tax bracket due to earning more money
  • You child turned 17 and no longer eligible for the Child Tax Credit and are now receiving the Credit for Other Dependents
  • You no longer qualified for the Earned Income Credit
  • You paid off your student loan and cannot deduct any student loan interest
  • You are no longer eligible for education credits
  • You took on an additional job
  • You sold investments
  • You had a distribution from a 401k that was not related to Covid-19
  • You had a change in filing status

If you would like to reevaluate your income tax withholdings, you could enter your information on the W-4 Withholding Calculator to get to your desired result for the next tax year. 

Level 3
Feb 9, 2021 6:07:17 PM

Your tax refund is a function of the difference between your actual tax owed and the amount of money you pre-paid toward that tax.  It has nothing to do, directly, with how much you worked.  It's not a "prize" for working, it's simply a return of your own money that has been sent to the government to ensure your taxes are paid.