Question

I updated Turbo Tax 3/22 and 3/30 and both times my refund reduced, by $3000 and $1000 on Federal. State (OK) I went from a $295 refund to owing $138. I didn't change any entires. Why did the updates cause this to change so drastically? Thank you.

Forum|Forum|5 years ago
March 31, 2021
1 reply
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No text available

It depends.

There have been several updates to the tax rules over the last few weeks. Please see the link below for the latest updates.

How will the 3rd stimulus affect me

Since this is an online public forum, there is no way to determine exactly what changed on your tax return between each update. I would recommend reviewing your federal tax return to see if you can determine if anything may have been entered twice or if a withholding was not entered.

In TurboTax, you can view your tax summary for your 2020 tax return by doing the following:

Go into the black panel on the left and select Tax Tools.
Then select Tools beneath Tax Tools.
A "Tools Center" box will pop up, select "View Tax Summary"
You will see a screen that gives a snapshot of your taxes based upon your input so far.
Click on the black panel on the left bar and select Preview my 1040
This will allow you to review your overall line items on your federal tax return.

After you review the above items, simply select "Back" in the black panel to get back to the interview forms.

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M

Mark176Author

Your reply did not help. All of my entries have been checked multiple times and are correct. There were no changes to any entries made after I opened turbo tax and agreed to the update. Maybe I should not update any more before filing so I don't lose any more money?

ReneeM7122

It's possible that the updates could have to do with the American Rescue Plan or something that was on hold because of it. Here is a TurboTax article about the American Rescue Plan.

If any of the following apply to you, then it could be the reason. Without reviewing your tax return it would be difficult to tell, but you can certainly ask for a line by line review to help you pinpoint the reason for the change.

Here's a link with more information.