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Tduniganz
New Member

why is the tax refund so low. did I miss something?

if refund less than 2024 why?
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2 Replies

why is the tax refund so low. did I miss something?

We cannot see your screen, your return or your account.  Have you entered ALL of your 2025 information?  All your income, etc.?  All deductions and credits?

 

There are a lot of variables that affect your refund or tax due including how much you earned, how much tax you had withheld, your filing status, the number of dependents you claim, your deductions and credits, etc.  You may have lost Earned Income Credit or the Child Tax Credit— did a child turn 17?  If you received the EIC last year, remember that changes in the amount you earn have a big effect on the amount of EIC you can get. (Sometimes earning more money means less EIC) Did you have any “side gigs” like rideshare driving or delivery driving—-with no tax withheld?   Are you 65 or older ?  If so, your standard deduction is higher. Everyone has a higher standard deduction now so it is harder to use itemized deductions.

 

And of course, always check your own data entries, looking for errors such as misplaced decimals or extra zeros.

 

https://ttlc.intuit.com/turbotax-support/en-us/help-article/tax-refund/refund-go-compared-last-year/...

 

Print out 2024  and 2025  and compare them side by side to see what is different. 

 

https://turbotax.intuit.com/tax-tips/tax-payments/video-why-would-i-owe-federal-taxes/L3VXudPiN

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
MindyB
Expert Alumni

why is the tax refund so low. did I miss something?

There are many reasons your refund may be lower, and just because it was different than 2024 doesn't mean either year is incorrect.  As @xmasbaby0  mentions, a great place to start is the comparison.

 

What to compare first:

  • Withholding vs. tax: Your total federal withholding may have dropped or your total tax increased. Check 1040 line 25 (withholding) vs. line 24 (total tax).
  • Credits: Child Tax Credit, education credits, Premium Tax Credit, EV/home energy credits, if any credits reduced or where only in 2024, that would cause the difference.
  • Deductions: A decrease in state and local tax, mortgage interest, charity, etc. can reduce deductions.
  • Income items: 1099-INT/DIV, capital gains, RSUs, RMDs, unemployment, side-gig/rental, if there was an increase, this would increase tax and can phase out credits.
  • Withholding changes: New jobs, bonuses, or W-4 updates often reduce withholding.

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