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Old 02-16-2010, 09:39 PM
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Frustrated

I'm sorry I don't have a lot of details for you here, all of my paperwork is elsewhere. Last year my wife and I received a federal tax refund of approximately $2100. This year our refund is more around $400. Nothing changed for us from last year to this year other than I have $15 less being deducted from my weekly paycheck for federal. We have 1 child, our gross income is approximately 91k, we donated approximately $750 to Goodwill and paid approximately 6k in interest on our home loan. Why could our refund go down so dramatically? Please any feedback would be greatly appreciated.

Thank you



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Old 02-16-2010, 11:59 PM
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One of the reasons was as that "the American Recovery and Reinvestment Act of 2009 (commonly referred to as the Recovery Act), which was signed into law on February 17, 2009, creates new federal withholding tax tables that decrease the amount of federal tax withheld effective from July 1, 2009. Thus, both you and your spouse had less federal income taxes withheld in 2009 and hence your tax refund would be lower!

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