Did my tax guy mess up my 1040 form? Only $280 refund on $77k income

Thanks for explaining that. I always thought bigger refunds were better. But if my withholdings were accurate, does that mean I actually did things right? Also, should I adjust my W-4 for next year anyway if I want a bigger refund?

You're welcome! Accurate withholding is actually ideal from a financial perspective. When you get a huge refund, it just means you overpaid throughout the year and could have had that money in your paychecks instead. If you really prefer getting a larger refund as a forced savings method, you can adjust your W-4 by requesting additional withholding. There's a line on the W-4 form where you can specify an extra amount to withhold from each paycheck. Just keep in mind that money won't earn any interest while the IRS holds it.

How exactly does that work? Do you just upload your returns or what? I'm wondering if my guy missed stuff too but I wouldn't even know what to look for.

Sounds interesting but I'm skeptical. How would it know about deductions your tax preparer missed if they weren't on your documents in the first place? Like if you forgot to tell them about donations?

You upload your tax documents (W-2s, 1099s, etc.) and your filed return, and it does a comprehensive analysis comparing what's on your documents versus what actually made it into your return. It helped me catch things I had documentation for but that weren't included. The system actually asks you questions based on your specific situation that might identify additional deductions or credits you qualify for. In my case, it prompted me about student loan interest and charitable donations which made me remember I had those receipts but hadn't given them to my preparer.

Wait, so you pay someone to wait on hold for you? How does that even work? Wouldn't the IRS just hang up if it's not you on the line the whole time?

This sounds like a scam. There's no way someone can magically get you through to the IRS faster than calling yourself. The IRS phone system is notoriously terrible for everyone.

It's not someone waiting on the line for you. Their system holds your place in the queue automatically and then calls your phone when an agent is about to pick up. The IRS never knows the difference because you're the one who speaks to the agent. The system doesn't get you through faster than the normal wait time - it just means you don't have to personally sit there listening to hold music for hours. You can go about your day, and then your phone rings when an agent is ready. Saved me literally hours of waiting on hold.

Thanks for this explanation! I checked and my withholding in Box 2 was $15,980 and my total tax on Line 24 was $15,600, so the math does check out for the $380 refund. I guess I was just expecting more because I've always gotten bigger refunds before. Is it normal for the refund to vary this much from year to year? Last year I got back around $2,400.

The big difference between last year's $2,400 refund and this year's $380 is worth investigating. Something significant changed in either your withholding or your tax situation. Most likely explanations: 1) You updated your W-4 withholding form last year and it's now more accurate, 2) You had additional tax credits or deductions last year that you didn't have this year, or 3) Your income increased putting you in a higher tax bracket while your withholding didn't increase proportionally. I'd recommend comparing last year's return line by line with this year's to spot the differences.

Not a waste at all. I tried doing my own taxes for years and always stressed about making mistakes. My tax guy catches things I would miss and the peace of mind is worth every penny. Plus, he's available if I get any letters from the IRS.

I agree with you. I've been doing my own taxes for years with just W-2 income using FreeTaxUSA. It's like $15 for state filing and federal is free. The software walks you through everything and double-checks for errors. Plus you learn how taxes actually work instead of just handing everything over to someone else.