Why did I get less tax refund this year as compared to last year?

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parth m asked:


I got a job in June 2007 and filed taxes in April 2007 as Married filing jointly. My wife doesn’t have any income. The W-2 that I got at that time showed my wages around 21200 $. My federal tax withheld was around 1700 $ and State tax withheld was around 530 $. I got 1315 $ federal refund and 60 $ State of Illinois refund so total of 1375 $ in 2008. Now this year, I continued the same job. The W-2 that I got shows my wages around 43,000 $, federal tax withheld was around 3400 $ and State Tax was around 1170 $. No change in our status. I still filed as Married Filing Jointly this year. My wife doesn’t have any income. I have Miscellaneous income around 700 $ this year. When I filed taxes with H&R Block, I only got a federal refund around 270 $ and State of Illinois return around 20 $. So in total of I got it around 290 $. How come I got so much less refund this year when I made more money? It seems that amount of wages and federal tax withheld are approximately double this year compared to last year. Everything else is status quo but then I am getting much much less this year. I calculated it on Turbotax and it also shows around 350 $. But when I put it on H&R Block calculator, it shows around 1500 $ and IRS calculator showing around 2600 $. Can someone help me with that? Am I putting some wrong numbers there? I already filed taxes with H&R block and I believe that H&R people should be right as they are professionals. But I just want to understand how this thing happened because it was kind of a shock for us. Thanks in advance.

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