Trusted Tax Lady Insights

Why Is My Refund Different This Year?

If you’ve filed your taxes and your refund looks smaller than last year — take a breath.

You are not alone.

Every tax season, clients call me worried, confused, or even frustrated because their refund changed. The truth is: refunds change for very specific, logical reasons — not because someone “did it wrong.”

Let’s break it down clearly.

1️⃣ Tax Credits Change Every Year

Credits like:

• Earned Income Tax Credit (EITC)

• Additional Child Tax Credit (ACTC)

• Education Credits (AOTC)

All have income limits and qualification rules that adjust annually.

If:

• Your income increased

• A child turned 17

• A dependent no longer qualifies

• You had less earned income

• Advance credits were received previously

Your refund will change.

That’s not a mistake — that’s math.

2️⃣ Age Matters for Child Credits

One of the most common surprises I see?

A child turning 17.

The Child Tax Credit is only available for children under 17 at the end of the tax year. Once they turn 17, the credit amount drops significantly.

Many families don’t realize this until filing time.

3️⃣ Filing Status Impacts Thousands of Dollars

Head of Household vs. Single

Married Filing Jointly vs. Separate

Your filing status affects:

• Standard deduction

• EITC eligibility

• Tax brackets

• Refund size

Choosing the wrong status can cost you thousands — or delay your return.

This is why due diligence matters.

4️⃣ Self-Employment (1099) Changes Everything

If you received a 1099-NEC or did gig work:

• You owe self-employment tax

• You may qualify for business deductions

• You may reduce your taxable income legally

But if no deductions are entered?

Your refund will shrink fast.

Schedule C is not “just entering income.” It requires strategy.

5️⃣ IRS Compliance Is Stronger Now

The IRS requires tax professionals to complete due diligence for credits like:

• EITC

• ACTC

• AOTC

• Head of Household

This includes documentation review and eligibility verification.

This isn’t us “asking too many questions.”

It’s protecting you — and your refund.

The Truth About Refunds

Your refund is not a prize.

It’s the difference between what you paid and what you owed.

The goal isn’t the biggest refund.

The goal is the correct refund.

Accuracy protects you from:

• Audits

• Refund freezes

• Credit disallowance letters

• Repayment penalties

Why I Created Trusted Tax Lady Insights

I created this blog to:

✔ Answer refund questions clearly

✔ Explain tax credits in plain English

✔ Reduce IRS fear

✔ Position you with facts, not rumors

✔ Help families and self-employed clients make informed decisions

You deserve transparency.

You deserve strategy.

You deserve accuracy.

Need a Professional Review?

If your refund doesn’t look right — don’t guess.

Let’s review it properly.

📞 Call or Text: (904) 980-8191

🌐 www.CoreLogixConsulting.com

📍 Serving Jacksonville, FL & St. Louis, MO

Your family deserves every dollar — filed with confidence.

— Rhonda Davis

Trusted Tax Lady

CoreLogix Consulting, LLC