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Old 02-22-2019, 11:25 AM
 
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Last edited by michmo1718; 02-22-2019 at 12:00 PM..
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Old 02-22-2019, 11:30 AM
 
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Refund has nothing to do with total tax paid. A refund is the difference between what you owe and what was paid in withholding.



Are you saying the amount of money withheld from your check hasn't changed or that the number of deductions claimed for withholding hasn't changed? Did you itemize or take standard deduction both years?



To compare your taxes, don't look at tax refund. Look at your gross income and your adjusted gross income.
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Old 02-22-2019, 11:33 AM
 
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I’d bet your withholding did change even if you didn’t request it
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Old 02-22-2019, 11:46 AM
 
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Last edited by michmo1718; 02-22-2019 at 12:02 PM..
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Old 02-22-2019, 11:55 AM
 
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Quote:
Originally Posted by michmo1718 View Post
The number of deductions claimed for withholding hasn't changed and we never itemize, standard deductions. The federal withholding amount has gone up roughly $15 per bi-weekly paycheck and state withholding $7 per bi-weekly paycheck.

$22/week increase in withholding would only account for about $1100.

I can understand if you don't want to disclose actual income and tax owed on a public forum but no one here can explain it without the numbers. We can play the guessing game all day long about your deductions, withholdings, 401k contributions, child tax credits, etc.

Compare 2018 AGI (Adjusted Gross Income) with 2017. Numbers are best but you can also take 2018 divided by 2017 and give us the result. If it isn't pretty close to 1.0 (say 0.95 to 1.05) then there has been a big change in the amount of income you are being taxed on.

Likewise, compare actual taxes owed from the IRS lookup chart for each year. Numbers are best but 2018/2017 ratio will do.

Of course, this all presumes you are being honest and legitimately trying to understand it and not spinning it to make a political statement as many on these forums do.
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Old 02-22-2019, 12:01 PM
 
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Learn to read the W-2 wage and tax statement, the 1099 statements, and the 1098 mortgage interest statement.
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Old 02-22-2019, 12:04 PM
 
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The withholding rates for a given number of "exemptions" as shown on one's W4 were dramatically changed in 2018. For me, at least, I would have been grossly under-withheld with a huge tax bill (and even possible penalties) had I not adjusted.

This is why you should always go in, sometime after you file your taxes, and estimate your next year taxes and adjust withholding as needed.
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Old 02-22-2019, 12:36 PM
 
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So many people don't understand that if you are getting a big tax refund you are doing it wrong. That just means you paid in advance more than you owe and gave the government an interest-free loan. It would be like paying the electric company $200 every month for a $150 bill then celebrating when they "give you back" $600 at end of year.
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Old 02-22-2019, 01:52 PM
 
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Most low income people do not pay any federal taxes but receive a huge tax refund due to the EITC and Child tax credit.
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Old 02-22-2019, 03:52 PM
 
8,566 posts, read 5,808,963 times
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Quote:
Originally Posted by turf3 View Post
The withholding rates for a given number of "exemptions" as shown on one's W4 were dramatically changed in 2018. For me, at least, I would have been grossly under-withheld with a huge tax bill (and even possible penalties) had I not adjusted.

This is why you should always go in, sometime after you file your taxes, and estimate your next year taxes and adjust withholding as needed.
Exactly!! You are one of the smart ones who understand.

WE adjusted last year and on same income saved almost 5K which we received as a refund.

We are happy with the Tax Cut
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