Anonymous
Anonymous asked in Business & FinanceTaxesUnited States · 8 years ago

Does my federal tax refund sound correct? Significantly lower than 2010...?

I am married, filing jointly and we claim 2 dependents under age 17 (both our children). My husband has the same job as 2010 and gets paid about the same. I also have the same job as 2010, but worked a lot more in 2011 (still only part time though). in 2010, we got a federal refund of $3,159. That's usually the amount we get each year for the past five+ years. I've been using Turbotax free edition for as long as I can remember. However, once all of our info was entered in for 2011's taxes, it says our federal refund is only going to be $442. We qualified for the child tax credit of $2,000 (1 for each child) and $35 for EIC. Why would the refund only be $442 then? We are very confused. Here is some additional info:

Husband's income- $37,344 (2011) and $37,768.93 (2010)

Federal tax withheld- 316.93 (2011) and 746.04 (2010)

Social security withheld- 1679.31 (2011) and 2478.06 (2010)

Medicare withheld- 579.76 (2011) and 579.55 (2010)

My income- $8551.03

Federal tax withheld- 0.00

Social security withheld- 359.14

Medicare withheld- 123.99

I don't have my W-2 for 2010, but I only worked 4 months as a seasonal employee and made less than $3,000. I am noticing that way more was deducted from my husband's paychecks in 2010 than in 2011 and he hasn't changed his allowances in several years. Is it possible that it took a couple years to kick in? Are we in a higher tax bracket now that we make over $45,000 combined? I tried entering our info on another tax filing site and got the same refund amount on there that I got on Turbotax, so it must be correct but we aren't sure why, and what happened to the $2,000 we're supposed to get for the child tax credit? Any help would be greatly appreciated!

Update:

We did get a small amount for the earned income credit ($35), but the child tax credit is different. For each dependent under age 17, you get $1,000. I looked into that, and you have to make over $110,000 annually to not get the whole thing. Appreciate the quick responses, thanks!

9 Answers

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  • 8 years ago
    Favorite Answer

    The first $11,600 of your income (your standard DEDUCTION from income) is not taxable. Then, you have $14,800 in EXEMPTions from income, also not taxed. Income above that becomes taxable, starting at 10%, then up to 15%. Your husbands income plus your $3000 in 2010 had enough breathing room to give you a fair refund, since he had enough withheld in 2010 to cover the additional $3000 income that you earned, even though you had no taxes withheld. In 2011, you added another $5500 in income, and still had no taxes withheld. $5500 X 15% is $825 in additional tax. His withholding had to cover the extra burden, because your employer did not withhold ANYTHING from your income. The income you add is the "cream at the top", added to the taxable income. Also, there was no Making Work Pay Credit. I believe you did get the $2000 child credit, but it was used to reduce your tax liability. Why aren't you having any taxes withheld? Adjust your W4 with your employer.

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  • 8 years ago

    Bottom Line: Without that $2000 child tax credit, you would have owed. A $2000 credit doesn't mean that you get $2000 back automatically. It first lowers your tax liability.

    Issue 1) Last year, you would've received a $800 Making Work Pay Credit. That was replaced this year by the reduction in the social security taxes.

    Issue 2) Even though the Making Work Pay Credit expired, your husband's withholding dropped by over $400.

    Issue 3) You made $8500 and had no federal income taxes withheld.

    Basically, you two already received most of your "refund" in your paychecks.

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  • 8 years ago

    if you mean the Earned income credit (you probably received for 2010), you now make over the allotted amount to qualify. With your income at 8500 and no taxes put in, you will have to pay more for your owed taxes which brings down your total. I made 34000 in 2011 but I paid 3500 in taxes throughout the year. Most of this I will get back, but with a combined income of 45000 and only 746 paid to the IRS, your amount of your refund will be quite low.

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  • 8 years ago

    You are not receiving the child tax credit because your income was over $45,000. If you have not already finalized your taxes... I would suggest that you wait on the $3000 w-2 form and you and your husband file married filing separate and the both of you claim one child each... you with the lower income should claim the youngest child considering that the tax credit depreciates as the child gets older. I hope this helps and that things work out for you guys.

    Source(s): www.irs.gov handrblock.com
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  • 8 years ago

    You most likely went to a higher tax bracket. In addition your husband had more money withheld in 2010 then in 2011.

    Source(s): Tax Preparer
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  • 4 years ago

    Ceteris parabus to your 2009 tax return, it sounds like you may have had less federal tax withheld from your paychecks. Check with your payroll supervisor to see how many exemptions you had down last year from your W-4. Do you itemize your deductions? If you don't itemize your deductions on Schedule A then the charitable contributions will have no taxable consequence.

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  • 8 years ago

    You had no federal taxes taken out of your income! Also, your husband had very little taken out; I made 43,000 and had $4000 taken out in Federal taxes! Are you sure that # is correct? What is he claiming for deductions, 20? You have basically already received your refund in your husband's paycheck! As you had no taxes out of your pay that is taking out of the credits you are eligible for.

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  • tro
    Lv 7
    8 years ago

    your total gross is getting near the limit for EIC which means that credit is substantially smaller than you probably had in other years

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  • Poppy
    Lv 7
    8 years ago

    You thought Obama was decreasing taxes? Not!

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