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February 11, 2022
Question

I worked all of year 2021 with no unemployment filings. But my tax refund is half than what I get prior Covid.

  • February 11, 2022
  • 1 reply
  • 0 views
My income has not changed, only 1 week of unemployment was filed for 2021 with taxes taken out.

My federal refund is half now. And My state return is approx half as well.

Is it something I do not know or some tax rule that changed?

1 reply

February 11, 2022

Without looking at your return it is hard to tell why your refund is less than what you expected. 

 

  • Didn't update your W-4 for proper withholding, worked multiple jobs, or changed W-4 for more take-home income. Didn't have enough taxes withheld.
  • You didn't qualify for the Earned Income credit
  • You changed your Filing Status.
  • Unemployment is taxable in 2021. Last year, The American Rescue Plan Act, which Democrats passed in March, waived federal tax on up to $10,200 of unemployment benefits, per person.

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