# Why is my tax refund so much lower this year than last year



## mikelogg (Feb 9, 2010)

I can't figure this one out.We filed the same as 2008 ,except we made 4k more last year.We are getting 600.00 less on Fed. and 150.00 less on State.Could I be in a higher tax bracket,or are my taxes that much more for 2009?


----------



## stev (Feb 9, 2010)

At least you get some back .


----------



## shawn mills (Feb 9, 2010)

probably the same reason I owe( ------) ! GUBERMENT LEACHES!


----------



## david w. (Feb 9, 2010)

i wish i could say that.


----------



## boneboy96 (Feb 9, 2010)

shawn mills said:


> probably the same reason I owe 44k! GUBERMENT LEACHES!



Dang Shawn...


----------



## shawn mills (Feb 9, 2010)

boneboy96 said:


> Dang Shawn...


yeah BB! British Columbia startin to look REAL GOOD!


----------



## jtdawg (Feb 9, 2010)

mikelogg said:


> I can't figure this one out.We filed the same as 2008 ,except we made 4k more last year.We are getting 600.00 less on Fed. and 150.00 less on State.Could I be in a higher tax bracket,or are my taxes that much more for 2009?



First, Compare your federal tax owed for 2008 and 2009.  If 2009 is more than 2008 and you made 4k less in 2009 than 2008 you have miscalculated somewhere.  The federal tax brackets have only slightly changed from 2008 to 2009 and that was to your benefit.

Other things it could be....Was your withholding throughout the year less this year?  If you didn't pay as much in, obviously you don't get as much back.
Did you miss an exemption or did you lose an exemption?  If you itemize are your deductions less?  Did you have any tax credits last year that you don't have this year?

If things really are the same as 2008 except you made less, you should not have to pay more federal tax this year.  You made a mistake somewhere.

I believe state would be the same.

EDIT:  I think i misread and see that you make 4k more in 2009 than 2008.  If your withholding did not increase with your pay increase then you won't get as much back.


----------



## jimbo4116 (Feb 10, 2010)

mikelogg said:


> I can't figure this one out.We filed the same as 2008 ,except we made 4k more last year.We are getting 600.00 less on Fed. and 150.00 less on State.Could I be in a higher tax bracket,or are my taxes that much more for 2009?



I am not subject to withholding from a paycheck, but I believe that the withholding rate (for lack of a better term) was lowered last year and touted as a tax reduction.  In fact you did not get a tax cut but a reduction in the amount of tax withheld, now that chick has come home to roost.

Compare your w-2 from 2008 to 2009.  You will probably find you had less dollars withheld in 2009 even with the same or more income.


----------



## huntfish (Feb 10, 2010)

mikelogg said:


> I can't figure this one out.We filed the same as 2008 ,except we made 4k more last year.We are getting 600.00 less on Fed. and 150.00 less on State.Could I be in a higher tax bracket,or are my taxes that much more for 2009?



If you earn more, you pay more....


----------



## secondseason (Feb 10, 2010)

jimbo4116 said:


> I am not subject to withholding from a paycheck, but I believe that the withholding rate (for lack of a better term) was lowered last year and touted as a tax reduction.  In fact you did not get a tax cut but a reduction in the amount of tax withheld, now that chick has come home to roost.
> 
> Compare your w-2 from 2008 to 2009.  You will probably find you had less dollars withheld in 2009 even with the same or more income.




Exactly!!


----------



## notnksnemor (Feb 10, 2010)

Did you claim the "Making work pay" tax credit?

http://www.irs.gov/newsroom/article/0,,id=204447,00.html


----------



## PaulD (Feb 10, 2010)

mikelogg said:


> i can't figure this one out.we filed the same as 2008 ,except we made 4k more last year.we are getting 600.00 less on fed. And 150.00 less on state.could i be in a higher tax bracket,or are my taxes that much more for 2009?





change!


----------



## jtdawg (Feb 10, 2010)

jimbo4116 said:


> I am not subject to withholding from a paycheck, but I believe that the withholding rate (for lack of a better term) was lowered last year and touted as a tax reduction.  In fact you did not get a tax cut but a reduction in the amount of tax withheld, now that chick has come home to roost.
> 
> Compare your w-2 from 2008 to 2009.  You will probably find you had less dollars withheld in 2009 even with the same or more income.



The witholding rate was lowered so that 400 per individual less was taking out as withholding for the year.  You have to take the making work pay tax credit of 400 when you file which will lower your tax liability and make it truly a tax cut.  So they didn't adjust the tax tables, just added this credit.  Some people had issues where when they lowered the withholding rate they lowered it too much so they didn't take enough.  These people are getting less back because they paid in less.


----------



## mikelogg (Feb 10, 2010)

Thanks for the replies folks.I did a double check and I did pay less Fed. tax in 2009 than in 2008.


----------



## mikelogg (Feb 10, 2010)

jimbo4116 said:


> I am not subject to withholding from a paycheck, but I believe that the withholding rate (for lack of a better term) was lowered last year and touted as a tax reduction.  In fact you did not get a tax cut but a reduction in the amount of tax withheld, now that chick has come home to roost.
> 
> Compare your w-2 from 2008 to 2009.  You will probably find you had less dollars withheld in 2009 even with the same or more income.



This is exactly what happened.


----------



## Rangerboats (Feb 11, 2010)

Your not the only one. I had a simple W-2 like last year, made a little more this year and got $800 less back this year than last!!! Thank you Mr. President!!!!!


----------



## Luckybuck (Feb 11, 2010)

Government does not give you "REFUNDS" you just overpaid what you owed that was your money to begin with.  This time of year puts me in a bad mood.


----------



## tv_racin_fan (Feb 12, 2010)

My wife asks me almost every year, Why don't I get anything back? At Christmas she mentioned it and my sister said it is because you are doing a good job, the last thing you want is a big refund because that means you allowed the govt to borrow money from you at no interest. The wife said yeah but I had to pay the state, sis said that means you did an even better job. That means the govt allowed you to keep some of their money interest free. The wife hopes she didn't do a really super job this year because it will mean she had to pay both state and fed...


----------



## MolenaPapa (Feb 12, 2010)

Remember the stim. money the Prez. sent you?  He didn't give us anything.  They adjusted the withholding so that we would have to pay it back.  If you did not adjust your withholding appropriately you are now having to pay back at least that amount or more or you get less refund back.
Supposed to have made Obm look good but like most of his other change agenda it has fallen backfired.  The Feds merely loaned you your own money and now it's pay back time.


----------

