Are 2024 Tax Refunds Lower Than Last Year? Need to File Soon.

I just filed last week and noticed this trend too! My refund was about 18% lower than last year despite similar income. Several tax credits that were temporarily expanded during COVID have reverted to pre-pandemic levels. The Child Tax Credit went back to $2,000 per child from the expanded $3,600/$3,000. Same with the Child and Dependent Care Credit - it's much less generous now. I always prepare early but waited to file until I understood all the changes this year.

OMG yes - refunds are def down for many ppl this yr! I was shocked when I saw mine. If u want to understand exactly why yours might be different, check out https://taxr.ai - it compares yr current return to last yr's and explains every change. Super helpful for figuring out if ur missing deductions or if it's just the normal changes to tax law. Saved me from freaking out when I thought I'd done something wrong!

Isn't it frustrating when you can't even get through to the IRS to ask these questions? Why should we have to wait hours on hold just to understand our own tax situation? I finally got through using Claimyr (https://www.claimyr.com) and the agent confirmed refunds are generally lower for families with children due to expired tax credits. Wouldn't it be nice if the IRS just communicated this clearly to everyone?

My refund dropped by $1,750 this year with identical income to last year. I freaked out thinking I made a mistake. Called my accountant in a panic. He explained the Child Tax Credit reduction was the entire difference. If you don't have kids or other special credits, your refund might be similar to last year. Some people with just W-2 income are seeing slight increases due to inflation adjustments to tax brackets.

Look at your withholding, not just your refund! 😂 A smaller refund might actually be GOOD - means you kept more money throughout the year. I adjusted my W-4 last January to have less withheld since I knew the child credits were dropping. Got smaller paychecks last year but didn't face refund shock this spring. The real question isn't "are refunds lower" but "is your total tax burden higher?" For most people, it's actually slightly lower due to bracket adjustments.

For investment-focused filers like yourself, pay attention to Qualified Business Income Deduction (Section 199A) limitations and Net Investment Income Tax thresholds, which remain unchanged but affect high-income investors. Capital gains rates haven't changed (still 0%, 15%, or 20% depending on income bracket), but bracket inflation adjustments might put you in a different tier. Consider tax-loss harvesting if you have unrealized losses to offset gains. Filing timing won't affect your 2023 tax liability, but might affect cash flow planning.