Why am I getting a lot less tax refund this year?

Our income has been the same for 3 years, and we even gave/ itemized an extra $1000 this year beyond the prior 2 years. We didn't jump into a new tax bracket, and we continue to have "0" deductions with our employers so we get alot back each April.

State refund remains the same at $900.. but Federal went from $2000 last 2 yrs to owing $50 this year. WHY???

By the way, I've done 3 tax websites, and all give the same refund, so I didn't have a typo.

Please help!!!!

Pull out last year's tax return and compare it to this year's, line by line. That will tell you where the big changes are.

That does suck. Ours was $1100 less than last year.

It depends basically on three things:
1} Did you earn very little?
2} Did you suffer large business losses or investment losses?
3} Did you send in estimated tax?
Any of these things and more can cause you NOT to owe a lot of tax. However, the majority of the time you will owe and you are likely to owe to your State if your State has income tax. If you owe a lot of tax you can ask for interest and penalty to be waived. This is especially true if you are assessed additional penalties. If this is the first time, you have a very slight chance of getting the penalties waived. It's very slight, but it's in your interest to try. Don't go to a preparer [blockhead, jack dimwit] that slaps interest and penalty on "for you", thereby making your tax situation even worse.
Also, this will happen sooner or later: Q6: I have been directed to lock in an employeeâ€™s withholding. What happens if I do not lock in the employeeâ€™s withholding as directed?
A6: Those employers who do not follow the IRS lock-in instructions will be liable for paying the additional amount of tax that should have been withheld.
Q7: Our employees can submit or change their Forms W-4 on line. How can I prevent them from changing their Forms W-4 after they have been locked-in by the IRS?
A7: You will need to block employees who have been locked-in from using an on line Form W-4 system to decrease their withholding.
Q11: I heard my employer no longer has to routinely submit Forms W-4 to the IRS. How will this affect me as an employee?
A11: There is no change in the requirement that employees have adequate income tax withholding. The withholding calculator found on www.irs.gov is available to help employees determine the proper amount of federal income tax withholding. Another useful resource, Publication 919, â€œHow Do I Adjust My Tax Withholding?â€ is available on the IRS Web site or can be obtained by calling 1-800-TAX-FORM (829-3676). Individuals who do not have sufficient income tax withholding are subject to penalties. The IRS will be making more effective use of information contained in its records along with information reported on Form W-2 wage statements to ensure that employees have enough federal income tax withheld.

you said "our "income, so are you married? do you have any children?? the only thing i can think of off hand,is that you have an older child, who turned 17, and is not eligible for the child tax credit this year.

That doesn't sound right. We had the same income also from last year to this, and we are getting back the same amount as we did last year. The only thing I can think of is maybe you are in a higher tax bracket than we are (mid $50k) and they've shifted the tax burden (?) I think this warrants a look-over of last years return and if everything looks correct, a call to IRS to determine if they've increased tax rates or what other reason your tax burden is so much higher this year.

your probably changed your withholding with your employer. A refund isn't free money. it's a REFUND of money you over paid by not claiming the right exemption on your with holdings form. If your withholding form with your employer accurately reflects your tax claims, then you paid exactly as much tax last year as you were supposed to, so you don't get a refund.

Refunds aren't a good thing. You're basically lending money to the government with 0% interest. Increase your number of exemptions on your W-4 to get the refund as close to 0 as possible. There are W-4 calculators on the internet. (Don't exempt too much or you'll pay a penalty for owing too much)

Anyway, thats life, my insure you goods and life in an insurance company
or you branch to Co-operative Company to learn you more.

You need to find out what loop hole will work for you to get your money back. Funny how Bushes Tax "CUT" is costing you 2000.00 a year isn't it?

Because of the Democrats who got into Congress? Just wait until one gets into the White House!

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