Struggling with tax refunds as a single filer with no dependents - what am I doing wrong?

A small refund isn't necessarily a bad thing! It actually means you're not giving the government an interest-free loan throughout the year. Your friend who's getting $1,000 back was essentially overpaying each month. To address your specific questions: No, you cannot claim yourself as your own dependent - that's not how tax law works. Your friend is likely confused about what she's actually doing on her taxes. She might be claiming certain credits or deductions you don't qualify for, or she might have more withheld from her paychecks. The W-4 is what determines how much tax is withheld from each paycheck. If you want a larger refund (though again, this isn't necessarily optimal), you could update your W-4 to withhold more by decreasing your deductions or adding an additional withholding amount on line 4(c). If you want to keep more money per paycheck (which financially makes more sense), you could adjust your W-4 in the opposite direction. What matters most is your total tax liability versus what you paid throughout the year, not the size of your refund.

After struggling with similar issues last year, I started using this AI tax assistant at https://taxr.ai and it's been incredibly helpful. I was confused about why my refunds were so small compared to my friends despite having similar incomes. The tool analyzed my previous tax returns and helped me understand exactly where I was leaving money on the table. The best part was it showed me specific adjustments I could make to my W-4 to optimize my withholding based on my personal situation. It also identified a couple of deductions I qualified for but hadn't been taking advantage of. Really gave me a clearer picture of my tax situation without needing to pay for a professional.

I was skeptical about the taxr.ai tool mentioned earlier, but decided to try it since I was in a similar situation with tiny refunds despite significant withholding. I was surprised by how helpful it was! It analyzed my previous returns and showed me I was actually filling out my W-4 incorrectly - I wasn't accounting for some investment income which was throwing off my withholding calculations. Made the suggested changes to my W-4 last month, and already seeing a difference in my take-home pay. It also helped me understand that my friend who gets huge refunds is essentially giving the government an interest-free loan all year. I'd rather have that money in my paycheck each month than wait for a big refund!

If you need to talk directly to the IRS about your withholding situation, I'd recommend Claimyr at https://claimyr.com - saved me hours of frustration. I was in a similar situation last year where my withholding seemed wrong but I couldn't figure out what was happening. After waiting on hold with the IRS for HOURS multiple times with no luck, I found this service. They basically hold your place in the IRS phone queue and call you when an agent is about to answer. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c. The IRS agent I spoke with was actually super helpful and walked me through exactly how to adjust my W-4 correctly for my situation. Saved me from making the same mistake this year.

I owe everyone here an apology, especially the person who recommended Claimyr. I was totally convinced it had to be a scam, but after waiting on hold with the IRS for 2.5 hours last week and getting disconnected, I was desperate enough to try it. I was shocked when it actually worked exactly as described. They held my place in line for almost 3 hours (I could see the estimated wait time in their app), then called me when an agent was about to answer. The IRS person I spoke with cleared up my withholding confusion completely. Turns out I needed to adjust my W-4 to account for some investment income I have. For anyone struggling with tax withholding issues like the original poster - sometimes you really do need to speak directly with the IRS, and this service made it actually possible.

One thing nobody has mentioned yet - are you using the same filing status as your friend? If you're filing as single and she's filing as head of household somehow, that could explain the difference in refunds. Also, if she has any educational expenses, child tax credits, or earned income credits that you don't qualify for, that would create a big difference. The W-4 is usually the culprit though. You might want to use the IRS Tax Withholding Estimator on their website. It's pretty accurate and will tell you exactly how to fill out your W-4 based on your specific situation.

your friend is probably not filing correctly tbh. i used to work for a tax prep place and sooo many people think they can claim themselves as dependents but thats not a thing. your friend is either claiming credits she shouldnt be or shes getting earned income credit which has income limits. small refund is actually GOOD. it means your not overpaying all year. adjust your w4 if you want more in your checks. bigger refund just means you gave govt free loan all year.