One possible explanation is if your rental properties qualify for the Qualified Business Income (QBI) deduction, then as you increase your expenses, the rental income decreases. When the rental income decreases, the QBI deduction decreases as well, thus reducing your overall refund amount.
To learn more, take a look at the following TurboTax help articles:
What is the Qualified Business Income (QBI) deduction?
Can I get the QBI deduction on rental income?
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