What To Do If Your Tax Refund Is Less Than ExpectedBy BenOni | January 24, 2023
If you’re expecting a tax refund but the amount is less than you anticipated, don’t panic. There are a few things you can do to figure out why your refund is less than expected.
First, check the math. Sometimes the IRS makes mistakes, and it’s possible that your tax refund was calculated incorrectly. If you think the IRS made a mistake, you can file a corrected return.
Second, check to see if any taxes were withheld from your refund. If you had taxes withheld from your refund, the amount withheld will be deducted from the total refund amount.
Third, check to see if you owe any other taxes. If you owe taxes on other income, such as investment income, the IRS will deduct that amount from your tax refund.
Fourth, check to see if you qualify for any tax credits that would reduce your tax refund. For example, the Earned Income Tax Credit is a tax credit for low- and moderate-income taxpayers. If you qualify for the credit, your tax refund will be reduced by the amount of the credit.
If you’re still not sure why your tax refund is less than expected, you can contact the IRS for help.
We’ve all been there. You file your taxes, eagerly awaiting your tax refund only to find out that it’s less than you thought it would be. While it’s certainly not the outcome you were hoping for, there are a few things you can do to make the most of the situation.
First, take a deep breath and try not to panic. It can be easy to get caught up in the disappointment of a smaller-than-expected refund, but it’s important to remember that a refund is simply the government giving you back any excess taxes that you’ve paid throughout the year. So, while a smaller refund may be disappointing, it doesn’t necessarily mean that you’ve done anything wrong.
Next, take a look at your tax return and try to figure out why your refund is smaller than you thought it would be. There are a number of potential reasons for this, such as claiming fewer deductions than you did in the past or having a higher income than you did last year. Once you’ve determined the reason, you can take steps to ensure that it doesn’t happen again in the future.
Finally, don’t forget that a smaller tax refund can still be put to good use. While it may not be as much money as you were hoping for, it can still be used to pay down debt, build up your savings, or even invest in yourself by taking a class or going on a trip. Whatever you do, don’t let a smaller-than-expected tax refund get you down.