Question

Why did my tax return drop from $5,550 to $1,997 at the end ?

Forum|Forum|6 years ago
February 9, 2020
2 replies
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TurboTax Free Edition Online

linaj20201

It could be due to many reasons.

Without seeing your tax return, it is hard to say. I would suggest you consider our new product / features TurboTaxLive to file your 2019 taxes to have one of our tax professionals to take a look. In the TurboTax program, once you complete your taxes, before you file, you’ll be given the option for a final review of your return by one of our tax professionals. After they completed reviewing your return, they’ll inform you of any proposed changes.

Here are the details:

https://ttlc.intuit.com/replies/6071042

VolvoGirl

Employee

Do you have a big tax due on federal or state? At the end Turbo Tax shows you the net combined of federal and state. But that is only for your info. You will still get the full federal refund minus the fees and you need to pay any state tax due.

A

AJROMAN

this just happened to me aswell i am about to file with freetaxusa which is still quoting me 5545 for just federal

ReneeM7122

The reason that your refund changed could be for many reasons.

If your refund is lower than expected this year, you’re not alone. A lot of people experienced financial hardships in 2020 that could have an impact on their refund. But don’t worry, TurboTax looks for every possible deduction and credit to maximize your refund!

The situations below are some of the most common reasons why you might be getting less money than you expected. For example, did you:

Adjust your withholding to maximize your take home pay
Receive unemployment benefits, but didn’t have taxes withheld
Earn little or no income, so you didn’t qualify for the Earned Income Credit (unfortunately, unemployment doesn’t count as earned income)
Complete a 2020 W-4, which more closely matches your tax liability
Sell stock
Take an early withdrawal from your retirement account
Pay less tuition due to school closures, so you can’t deduct as much

To maximize your refund next year, invest, and/or pay taxes you might owe, consider some of these options:

Amend your W-4 to increase the amount of withholdings for a higher refund next year; or
Instead of withholding more, put that same amount into a savings account, an IRA, or other tax-sheltered vehicle
If you can’t pay taxes you owe for unemployment benefits in full, the IRS offers alternate payment options. If you’ve already filed, you can complete an Online Payment Agreement application or request a payment plan by phone at 800-829-1040
If your refund is wildly off, double check the amounts you input (a dollar amount mistype can have a big impact on your refund)

Here are some other possible reasons for a year-over-year refund decrease:

Changes in your income or tax rate

State and local income tax deduction changes

Losing certain credits or deductions

@AJROMAN