HUGE difference in clients previously filed return and the new adjusted one

KristensTax · ‎April 09, 2023

Hi,

I'm not sure if this is where I would ask a question like this, and I'm not a real expert when it comes to ProFile as I just started to use it this week. However, My client, I am going over her prior years for her to make sure there is no mistakes as she filed them herself forever. I'm on her year 2016, and I see from going through her account in Represent A Client that she managed to get an almost 2000 refund when she filed her taxes. But when I input the same numbers on the same lines, with he same schedules and all, I, so far have only managed to pull a measly 700 dollar return. Anyone have any idea what is going on here?

She is married, but I'm not adjusting the husbands as they are newly seperated, she has 2 children born is 2013 & 2015, and she makes a decent living working for the city I live in usually clocking in at around 35-50,000 easily. She has child care expenses around 8,000. And RRSP contributions through her employer. But that s basically it. Her hubby, so far has made right around the same or a bit more than her. What am I missing???????

janisbossenberry · ‎April 10, 2023

Are you entering the husband's income as previously reported? For example, the child care expense will go onto the lowest income earner, so if the husband's income was lower than hers in a year, he would have had to claim the child care expense, decreasing her refund, increasing his. It also makes a difference in earlier years (I think 2014 and earlier) who claims the children. I would compare the non-refundable tax credits claimed on each tax return (hers and yours) after making sure the taxable income and tax withheld figures agree.