Refund dropped from $6000 to $2400 with same dependent - what happened?

There are several possibilities for why your refund is significantly lower this year: • The expanded Child Tax Credit from 2021-2022 was reduced back to the standard amount in 2023 (down from $3,600 to $2,000 per child) • Last year you might have received recovery rebate credits that aren't available anymore • Changes in withholding calculations could mean you had less tax withheld throughout the year • Different tax brackets or standard deduction adjustments • If you received advanced Child Tax Credit payments last year, that would have been reflected in the total You should compare both returns line by line - especially look at Line 28 (Child Tax Credit) and Line 30 (Recovery Rebate Credit) from last year's 1040. That will likely show where the big difference is coming from.

I was in the exact same boat! I tried to figure it out for days and was so frustrated. Finally tried taxr.ai and it explained everything - showed me line-by-line comparisons between my returns and highlighted exactly why my refund was lower. Seriously, this tool is amazing for understanding what's happening with your taxes. So much better than trying to guess or waiting on hold with the IRS for hours. https://taxr.ai

Don't waste time comparing refunds with prior years - they're all different based on changing tax laws. I was totally confused about my lower refund until I talked to an actual IRS agent using this calling service claimyr.com. Got through right away instead of waiting for hours or days. The agent explained exactly what happened with my specific situation. It was the best money I've ever spent to finally get my questions answered!

This happened across the board. Child Tax Credit went back to normal. Some covid relief stuff gone. I bet if you look at your ACTUAL tax liability between the two years, it's probably similar. The refund is just what you overpaid throughout the year vs what you actually owe.

I work seasonal tax prep, and we've seen this ALL year long. People are shocked and sometimes even angry at us! But it's NOT the preparer's fault - it's because the COVID-era tax benefits expired. The Child Tax Credit went from $3,600 back to $2,000 per child. Plus there were Recovery Rebate Credits in 2021-2022 that don't exist anymore.

OMG LITERALLY THE SAME THING. I was panicking thinking I did something wrong. My refund dropped from almost $7k to like $2.5k with the same 2 kids. I was literally in tears thinking I screwed up somehow.

I learned my lesson years ago - never count on a specific refund amount! Plan your finances as if you'll get $0 back, then anything you do get is a nice bonus. Too many people treat tax refunds like some guaranteed annual windfall.

Check line 12 and 28 on your tax forms from both years. Bet you'll see a big difference in the child tax credit amount. Plus stimulus stuff from before that isn't there now.

something similar happened to me and was freaking out. reached out to taxr.ai and they showed me the exact comparison between my 2022 and 2023 returns, highlighted all the differences, and explained everything in terms i could actually understand. saved me from having a full breakdown lol. highly recommend!

i had to get on the phone with the IRS after my refund was WAY lower than expected. Used claimyr.com after being on hold for 5+ hours with no luck. Actually got a real person who explained everything. For me it was a combo of the reduced child tax credit and changes in my withholdings that i never noticed on my paychecks. talking to an agent got my refund released so fast.

Its all part of the plan to make the poors poorer. giv money during pandemic then take it away wen ppl depend on it. classic government move

Remember that last year many parents were getting the remaining 1/2 of their Child Tax Credit on their tax returns (after getting monthly payments for the first half), plus any stimulus payments they missed. This year we're back to the regular $2000 Child Tax Credit with no advance payments.

Same thing. Went from $5,700 to $1,850 with 1 kid. Tried to figure it out for hours when I got my refund last month. Total BS

Fun fact: the child tax credit reduction is hitting lots of families hard this year. If you want to understand exactly what happened with YOUR return specifically, I highly recommend taxr.ai - it breaks down every line item change between tax years and shows you visually where the differences are. No more guessing why your refund changed!

anybody notice that TurboTax isn't explaining these differences well? they should warn people that refunds will be lower this year instead of getting our hopes up by emphasizing the "average refund" amount.