Does anyone know why my tax return gets lower each year??

Question

I've had the same job and a dollar raise each year. 2004=$1100
2005=$700 2006=$380

Answer 1

If you're eligible for the Earned Income Credit, once you get above a certain amount it goes down a little with each additional dollar you make. Even though the tables get adjusted a little each year, it might not be keeping up with your salary.

Of you might just not be having enough more withheld to cover the taxes on the additional income.

Answer 2

confusing question, your tax "return" is the tax form such as Form 1040. The money you get back from IRS if you overpaid your taxes is called your "refund". I would guess you are referring to your "refund" is getting lower each year. If you move into higher tax bracket your refund could be smaller, you have fewer itemized deductions, your employer could be deducting wrong amounts from your pay. I suggest you sit down with your payroll office first to see if they can help you.

Answer 3

Tax law changes.

The personal exemption and standard deduction amount is increased each year which will lower your taxable amount.

Answer 4

Because the democrats keep raising your taxes to pay for illegal immigrants to stay here and live off of you for nothing and welfare so some of our fellow countrymen and women can do the same.