Tax calculation seems incorrect

Don't Panic

If your refund seems too high, too low, or your amount owed doesn't look right, there's usually a simple explanation. Let's walk through how to diagnose the issue.

Step 1: Check All Income Is Entered

Missing income is the most common reason calculations look off. Verify that you've entered:

• **All W-2s** — Did you change jobs? Work multiple jobs? Each W-2 needs its own entry
• **1099 forms** — Freelance income, bank interest, investment gains, unemployment
• **Other income** — Gambling winnings, alimony (pre-2019), prizes

Go to Income in the sidebar and review each section. Your total income should roughly match what you actually earned during the year.

Step 2: Verify Your Deductions

Incorrect or missing deductions can significantly affect your bottom line.

• Check whether you're using the **standard deduction** or **itemizing**—FileJoy recommends the better option, but verify the amounts
• Make sure deductions are entered correctly (mortgage interest, property taxes, charitable donations)
• Confirm that above-the-line deductions are included (student loan interest, HSA contributions, IRA contributions)

Step 3: Check Your Filing Status

Your filing status has a huge impact on your tax brackets and standard deduction. Make sure you've selected the correct one:

• **Single** vs. **Head of Household** — HOH gives you a larger standard deduction and better brackets
• **Married Filing Jointly** vs. **Married Filing Separately** — Joint is almost always better
• Go to **Settings > Household** to review your filing status

Step 4: Use the Audit Page

FileJoy's Audit page gives you a detailed, line-by-line breakdown of your return. This is your best tool for finding discrepancies:

1. Click **Review** in the left sidebar
2. Select the **Audit** tab
3. Review each line item:

- Total income

- Adjustments to income

- Adjusted Gross Income (AGI)

- Deductions

- Taxable income

- Tax calculated

- Credits applied

- Payments and withholding

- Refund or amount owed

Compare these numbers against what you expect. If something looks wrong, click on the line item to jump to the relevant section.

Common Causes of Unexpected Results

Refund Lower Than Expected

• **Missing W-2** — If you forgot a W-2, your withholding is lower than it should be
• **Wrong filing status** — Married Filing Separately has the worst brackets
• **Income increased** — Higher income means higher tax, even if withholding increased too
• **Lost a deduction** — Did you stop itemizing? Lose a credit you had last year?

Amount Owed When You Expected a Refund

• **Under-withholding** — Your W-4 settings may need updating for next year
• **Self-employment income** — SE tax is 15.3% in addition to income tax
• **Investment gains** — Selling stocks or crypto can create a tax bill
• **Missing credits** — Check that all eligible credits (Child Tax Credit, EITC) are being applied

Refund Higher Than Expected

• **New credits** — Did you have a baby? Start college? File as HOH for the first time?
• **Increased deductions** — Big charitable donations, high medical expenses
• **Double-check for errors** — An overly large refund sometimes means duplicate income entries (which would be wrong)

Tips

• Compare this year's return to last year's—big changes should have clear explanations
• Use the dashboard's year-over-year comparison to spot differences
• If something still doesn't make sense, reach out to FileJoy support