Why Your Tax Refund Might Be Bigger (or Smaller) This Year
Many taxpayers look forward to their tax refund every year, but what happens when your refund is smaller (or bigger) than expected? Let’s break down the key reasons why your refund may have changed.
1️⃣ Changes in Withholding
If your employer adjusted your tax withholdings (or if you updated your W-4), it could affect how much tax was taken out of your paycheck.
2️⃣ Life Events & Deductions
💍 Got married or had a baby? Your filing status and dependents impact your tax refund.
🏡 Bought a home? Mortgage interest deductions could increase your refund.
🎓 Paid student loans? Interest deductions could lower your taxable income.
3️⃣ Tax Credits & Law Changes
📉 The Child Tax Credit, Earned Income Tax Credit (EITC), and other credits change every year.
📝 If you missed deductions or credits last year, you could see a refund boost this time around.
How to Maximize Your Refund
✔️ Check your withholdings early in the year.
✔️ Keep track of all deductions and credits available to you.
✔️ File with a tax professional to ensure accuracy and maximize your return.
💰 Need help making sense of your refund? Tax Pros HQ is here to guide you!