This year I worked in two states; part of the year in MS, earning $16,400 and the other part in MD, earning $5,000. When I put that information into the Federal tax page, online, my refund amount goes down considerably.
When I remove either the MS or the MD return, it makes a significant difference. Why does entering multiple W-2s from different states make this difference to the refund? Is there a way to avoid the loss?
I have been told it's because I have a standard deduction. Should I change that?