Why Your Tax Refund Might Be Smaller This Year

If your tax refund is smaller this year, you are not alone. Many taxpayers notice changes in their refund amounts from year to year. Several factors can affect how much you receive.

Changes in Income

If your income increased, you may owe more taxes or receive a smaller refund.

Higher income can mean:

• Higher tax brackets

• Reduced eligibility for credits

• More taxable income

  
  

Changes in Tax Credits

Tax credits often change from year to year.

Examples include:

• Child Tax Credit changes

• Education credit changes

• Dependent eligibility changes

These changes can impact refund amounts.

Changes in Withholding

If less tax was withheld from your paycheck, your refund may be smaller.

While this means you took home more money during the year, it may reduce your refund.

Life Changes Matter

Major life changes can impact taxes:

• New job

• Marriage or divorce

• Having a child

• Starting a business

Refund amounts change every year, and a smaller refund does not always mean something is wrong.

Hillman Financial Services can review your return and explain your results.

Book a consultation today.