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
Did you receive IRS Letter 3338C? Learn more about letter 3338C and how to handle it with help from the tax experts at H&R Block.
Learn how declaring bankruptcy could potentially impact your tax return with advice from the tax experts at H&R Block.
You can file an extension for your taxes by filing Form 4868 with the IRS online or by mail. This must be done by the tax filing due date. Filing an extension for your taxes gives you additional months to prepare your return no matter the reason you need the extra time.
Do you know how to check your tax refund status? Learn more about when to expect your tax refund and get tax answers at H&R Block.