Why is my return so much smaller this year? I think I'm in the same bracket, and I paid more taxes this year.

[cclynch33]

My income is higher this year (due to missing work last year due to an injury), but still in the same bracket.  In addition, I paid almost 2,000 more in taxes this year.  All told my CA state return is almost 300 less, and my federal return is almost 400 less.

[SweetieJean · Accepted solution]

My income is higher this year

Your Federal income is taxed over several brackets: the first part at 10%, the next at 15%, the next at 25%, etc.  That means that, if you are in the 25% marginal bracket, each additional dollar of income is taxed at 25%.  CA tax brackets are similarly graduated.

Deductions and credits can also change as your goes up.