Why is your tax refund smaller this year?
If your tax refund is not as large as it was last year, there are a few reasons why.
For example, recent tax law changes lowered most tax brackets, but if you didn't update your w-4, your employer probably withheld less from your paycheck.
Watch this TurboTax Support video to learn about more reasons why your income tax refund may be smaller than last year and how you can maximize your refund in the future.
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
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Although a tax refund isn't a windfall per se, it's important to put that money to good use.