Solved: Why is my return so much less than last year when ...
Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
Announcements
TurboTax has you covered during Covid. Get the latest second stimulus info here.
cancel
Showing results for 
Search instead for 
Did you mean: 
New Member

Why is my return so much less than last year when I made alot more money this year

 
1 Best answer

Accepted Solutions
Employee Tax Expert

Why is my return so much less than last year when I made alot more money this year

Your refund is not at all proportional to your income. It depends on 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.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

1 Reply
Employee Tax Expert

Why is my return so much less than last year when I made alot more money this year

Your refund is not at all proportional to your income. It depends on 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.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

Dynamic Ads
v
Privacy Settings