There are a few reasons why your tax refund might not be as large as it was last year.
Recent tax law changes lowered most brackets,
but if you didn’t update your W-4, your employer probably withheld less from your paycheck.
This means that instead of a larger refund, you got more money throughout the year.
Now there’s also a limit on the amount of state and local taxes you can include in your
itemized deduction.
You can only deduct a maximum of $10,000 of state and local taxes,
unless you’re married filing separately, in which case you can deduct a maximum of
$5,000.
Your refund could be smaller if you:
Made more money last year and aren’t eligible for certain credits, like the Earned Income
Credit.
Had a child who turned 17 last year and was no longer eligible for the Child Tax Credit.
Got a second job and your withholding didn’t match your effective tax rate.
Had income where no tax was withheld, like selling investments or gambling winnings.
Claimed a deduction, like the job-related expenses deduction, that was eliminated this year.
Tax laws change, but TurboTax is always up-to-date.
Rest assured that we have the latest information so you can file your taxes with confidence.
For more answers to your questions, visit turbotax.com/support