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corydb93
New Member

Why would my tax return for 2016 and 2017 be almost twice as much than for 2018 when I’ve been working for the same company and I’ve been making more money each year?

 
2 Replies
xmasbaby0
Level 15

Why would my tax return for 2016 and 2017 be almost twice as much than for 2018 when I’ve been working for the same company and I’ve been making more money each year?

Are you aware of the major tax law changes that went into effect for 2018 returns and beyond?

 

No one in this user forum can see your tax return or your screen.  There were major tax law changes that began with the 2018 tax year that seem to continue to surprise some people.  Personal exemptions of over $4000 per person were removed beginning with 2018 returns.

One thing that may be affecting your refund is that employers began withholding less tax when the new tax law passed.  Your paychecks were more, but that means a smaller refund now. 

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)  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/questions/1901008-why-did-my-refund-go-down-compared-to-last-year-s

 

https://www.postbulletin.com/news/business/tax-preparers-warn-your-refund-may-be-smaller-than-usual/...

 

 

TAX REFORM

 

https://ttlc.intuit.com/questions/4482394-how-will-tax-reform-affect-my-2018-federal-tax-return

**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.**
Critter
Level 15

Why would my tax return for 2016 and 2017 be almost twice as much than for 2018 when I’ve been working for the same company and I’ve been making more money each year?

You answered your own question ... you made more money each year ... thus you owe more taxes each year AND certain credits are reduced  AND the tax law changes reduced the withholding from the paycheck ... so review your returns side by side to see how these factors combined to reduce your annual refund. 

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