Why is my IRS refund amount so different in comparison to last year?
Many factors can affect the refund amount you’re entitled to each year and result in a lower refund than you might have anticipated. When attempting to understand changes to tax refund from a prior year, look at your returns line-by-line to find out what might have contributed to the refund changes. These factors include:
- Deductions or adjustments you claimed last year but weren’t able to claim this year for various reasons
- Changes in your income. (An increase or decrease might affect your eligibility for certain credits as well as your overall tax bracket.)
- Changes in federal income tax withholding. This could be due to a change in your income, your W-4, or the way you earned the income like overtime or bonus money.
- Self-employment income or losses and the associated taxes
- Changes in distributions from your retirement account and the associated taxes and / or penalties
- Changes in dependents you were able to claim could mean less refund
- Changes in your filing status
—– Penalties for not having Minimum Essential Health Coverage or a Repayment of Excess Premium Tax Credit
If you haven't filed tax returns in awhile, there are things you need to know. Learn how to address back tax returns and what you can expect when you file.
The IRS has contacted third parties to help figure out what you owe. Learn more about letter 3173 from the tax experts at H&R Block.
Don't confuse the IRS and make your situation worse by filing an amended return when you shouldn't. Learn more from the tax experts at H&R Block.
If you owe a balance to the IRS, you may have several tax debt relief options. Learn more from the tax experts at H&R Block.