Already early in the season, I’m talking with clients who are shocked at how much lower their refunds were in 2022. Here are some considerations:
A new job
A new job can change your taxes in two ways. You might be making more (a higher tax bracket) or they might take less money from your paycheck.
Childcare
The rules regarding childcare are completely different from 2021 to 2022. Income limits, the amount of the credit, and how the credit is paid are all different. None of the differences increase your refund.
Refundable credits
Some credits got downgraded from refundable to non-refundable. Non-refundable credits work like a coupon for your taxes. If you didn’t owe taxes in the first place, they don’t help.