I'm just wrapping up my taxes and am getting a much smaller refund than I anticipated and I'm not sure why.
My wife and I have our w4s set as married filing jointly with 0 allowances. I set mine to have an additional $50 taken for taxes per paycheck, because I was worried about underpaying.
We had a child in 2020, so we're getting the $2,000 tax credit plus $1,100 in stimulus money we missed out on (since the IRS wasn't aware we had a child).
Even with that we're still only getting a refund of ~$450.
I had some additional income of $800 from a side job, as well as ~$600 from savings account interest.
Even with that extra income, how come we're only getting ~$450 back? I would think that by us not including our child on the w4 PLUS me saving an extra $50 per paycheck we would be good. I was thinking filing married filing jointly and 0 allowances would take out the maximum amount of taxes...
EDIT: For anyone who happens upon this post in a search, try reading this for info on w4 that was updated last year: https://turbotax.intuit.com/tax-tips/irs-tax-forms/the-w-4-form-changed-in-major-ways-heres-whats-different/L611CpnaP
Submitted March 20, 2021 at 09:57PM by mtbaird5687 https://ift.tt/3ty3HPI
