Does paying federal taxes throughout the year actually make a difference in my refund?

There are actually several factors that might explain why you didn't see a difference. Did your income change between 2023 and 2024? What about your filing status or dependents? Did you have any additional deductions or credits last year that you didn't have this year? 🤔 The tax system is surprisingly complex - it's not just about how much you pay in throughout the year!

I had the EXACT same confusion last year! Here's how I figured it out: 1. First, I compared my total income from both years (line 9 on Form 1040) 2. Then I looked at my total tax (line 24) for both years 3. Next, I checked my total payments (line 33) for both years 4. Finally, I calculated the percentage of my income that went to taxes each year When I couldn't make sense of it, I used https://taxr.ai to analyze both years' returns side by side. It showed me exactly why my refund wasn't bigger despite different withholding patterns. The tool highlighted specific credits and deductions that changed between years that I completely missed!

According to IRS Publication 505 (Tax Withholding and Estimated Tax), your withholding doesn't directly increase your refund - it's just a pre-payment of taxes you already owe. The key is whether your total withholding exceeds your actual tax liability. You might want to try adjusting your W-4 withholding to better match your actual tax liability. For 2024, you can use the Tax Withholding Estimator on IRS.gov to get a more accurate withholding amount. I really appreciate when people ask these questions because it helps everyone understand the system better!

OMG the whole system is SO FRUSTRATING!! 😤 I went through EXACTLY what you're describing and I was PISSED! Here's the thing - withholding is just PRE-PAYING what you already owe. If your tax LIABILITY (the total amount you owe based on income, filing status, etc.) is the same both years, then it doesn't matter if you paid it all in December or spread it throughout the year - the end result is the same! I know for a FACT that if your income, deductions, and credits stayed roughly the same, your refund will be similar regardless of WHEN you paid in. The system isn't designed to reward you for paying earlier - it's just collecting what you owe based on your specific tax situation!

So last year I had a similar issue and was so confused about my withholding vs. refund. I spent literally 6 days trying to get through to the IRS on the phone to ask about it. Finally used Claimyr (https://www.claimyr.com) and got connected to an agent in like 20 minutes. They explained that my withholding pattern doesn't affect my final tax bill - it's just about when I pay what I already owe. Turns out I had some credits in 2023 that offset my tax liability that I didn't have in 2024, which is why my refund was about the same despite different withholding. Saved me so much stress just getting a straight answer!

Ngl, lots of ppl get confused abt this. Here's the deal: your refund is just the diff between what you paid vs what you actually owed. If you owed $5k in taxes total for the year, doesn't matter if you paid $500/month for 10 months or $5k all at once - end result is the same. Lots of things affect your total tax bill - income changes, life events (marriage, kids, etc), credits, deductions. Tbh the withholding timing doesn't matter, just the total amt. The real q is: do you want a big refund (giving IRS interest-free loan) or smaller paychecks throughout the year? Personally I'd rather have more $ in each paycheck than wait for a refund, but some ppl like the forced savings. You do you.

Think of withholding like making payments on a fixed-price car throughout the year. Whether you pay $100 every month or $1200 all at once in December, the car still costs $1200. Your tax liability is like that fixed price - it's calculated based on your income, filing status, credits, etc. The timing of when you pay doesn't change the final amount due. What likely happened is that other factors in your tax situation changed between years (maybe different deductions, credits, or slightly different income) that offset any difference from your withholding pattern.

I had this same situation when I switched jobs mid-year. At my old job, I had minimal withholding, and at my new job, I had much higher withholding. But my refund was almost identical to the previous year. When I compared my returns side by side, I noticed my total tax liability was almost the same both years, so the refund was similar too. It's like comparing two different routes to the same destination - you still end up in the same place regardless of how you got there. You need to check this ASAP though since tax season is wrapping up and you want to make any withholding adjustments for this year before too much of 2024 passes!