It is possible to report exactly the same income from one year to the next and the refund / balance due would change because: Federal tax withholding increased or decreased after a change of jobs or a change of payroll companies at the same job. Income is subject to capital gains treatment instead of ordinary tax rates. No longer qualifying or newly qualifying for a tax credit or deduction. The age or income of a dependent affects a tax credit or deduction. Qualifying under a different filing status. Qualifying / not qualifying for a Recovery Rebate Credit.

Question

My source of income changed by a few dollars from 2020 to 2021. why would my fed refund more then double for 2021?

Forum|Forum|4 years ago
January 29, 2022
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JamesG1

It is possible to report exactly the same income from one year to the next and the refund / balance due would change because:

Federal tax withholding increased or decreased after a change of jobs or a change of payroll companies at the same job.
Income is subject to capital gains treatment instead of ordinary tax rates.
No longer qualifying or newly qualifying for a tax credit or deduction.
The age or income of a dependent affects a tax credit or deduction.
Qualifying under a different filing status.
Qualifying / not qualifying for a Recovery Rebate Credit.