Tax season can be stressful, especially when you're expecting a significant return and find it's lower than anticipated. In 2024, TurboTax, one of the most popular tax software is guarantee However, understanding why your return might be lower than expected can help alleviate and potentially rectify the situation. If you have any queries regarding this, feel free to call us at- +1-844-508-2335.

Visit- Why Is My Tax Return So Low 2024 TurboTax?

Step 1: Review Your Income: Start by thoroughly reviewing all sources of income you've entered into TurboTax. TurboTax typically prompts you to enter income from various sources, but it's easy to overlook something.

Step 2: Check Your Deductions and Credits: TurboTax provides guidance on potential deductions and credits based on your inputs, but it's essential to double-check for accuracy.

Step 3: Verify Your Filing Status: Your filing status can significantly impact your tax return. Ensure you've selected the correct filing status in TurboTax, choosing the wrong filing status can result in an inaccurate tax calculation.

Step 4: Review Tax Withholdings: Check your tax withholdings to ensure they're accurate. If you've had too much or too little tax withheld from your paychecks throughout the year, it can affect your refund or tax owed. TurboTax allows you to enter information about your withholdings from W-2 forms and other sources. If you discover discrepancies, consider adjusting your withholdings for the next tax year to align with your tax liability.

Step 5: Examine Changes in Tax Laws: Tax laws change frequently, and updates can impact your tax return. Review any changes in tax laws for the current tax year and how they may have affected your tax situation.

Step 6: Analyze Investment Income and Capital Gains: If you have investment income or realized capital gains from stocks, bonds, or real estate, carefully review how they're reported in TurboTax. Capital gains are subject to specific tax rates based on factors such as your income level and how long you held the asset. 

Step 7: Consider Additional Taxable Events: Certain life events can impact your tax return, such as selling a home, receiving a windfall, or cashing out retirement accounts. These events may result in additional taxable income or trigger specific tax implications. Review any significant financial transactions or life changes that occurred during the tax year and ensure they're properly accounted for in TurboTax.

Related Blog: How to Rectify If My Tax Return So Low 2024 TurboTax?