Why did my tax return decrease?

Your income tax rate is determined primarily by the amount of your taxable income. If your taxable income increases, you may move into a higher tax bracket. When you owe more tax for the year but your payments and withholding remain the same, your tax refund will decrease.

Why does my tax refund get lower every year?

Answer: The most likely reason for the smaller refund, despite the higher salary is that you are now in a higher tax bracket. And you likely didn’t adjust your withholdings for the applicable tax year. So since your taxable income was higher you fell into a higher tax bracket that resulted in higher taxes.

Why is my refund lower than expected TurboTax?

If your IRS-issued tax refund comes in around $35 or $40 less than the amount shown in TurboTax, it’s probably because you used the Refund Processing Service option to deduct your Turbo Tax fees from your federal tax refund. You can also get this information by looking up your refund at the IRS Where’s My Refund page.

Why am I getting less taxes back this year 2022?

Some Americans could receive smaller refunds for the 2022 tax season. By Kelsey Ramirez Sponsored by Credible – which is majority owned by our parent, Fox Corporation, and is solely responsible for its services. Neilson says that the drop could be attributed to child tax credit changes that were implemented in 2021.

Why did I get less on my tax refund than I was told I would?

Why is my refund different than the amount on the tax return I filed? All or part of your refund may have been used (offset) to pay off past-due federal tax, state income tax, state unemployment compensation debts, child support, spousal support, or other federal nontax debts, such as student loans.

What is the child tax credit this year?

The American Rescue Plan, signed into law on March 11, 2021, expanded the Child Tax Credit for 2021 to get more help to more families. It has gone from $2,000 per child in 2020 to $3,600 for each child under age 6. For each child ages 6 to 16, it’s increased from $2,000 to $3,000.

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