Why does my refund decrease significantly when I enter my spouses income?

[sukhmeet15]

When you add your spouse's income, the software recalculates your refund by considering your combined household income. This can result in a significant decrease in your refund, as your combined income may place you in a higher tax bracket, or it may reduce certain credits if there is a change in marital status. 

Here's the great TurboTax article for more information: Should you and your spouse file taxes together or separately?

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