Without being able to compare your return from last year to this year, it is hard to say for sure, but a lower-than-expected refund is typically caused by shifts in income, credit eligibility changes, or more accurate tax withholding throughout the year.
Another reason may be due to The Earned Income Tax Credit. The EITC is highly sensitive to your Adjusted Gross Income (AGI). The amount of your AGI can either increase or decrease your EITC.
Also, if your employer withheld less tax from your paychecks throughout 2025, you received that money "upfront" in your take-home pay rather than waiting for it as a large lump sum refund.
To see exactly where the money went, compare your 2024 and 2025 returns:
- Select Tax Tools > Tools from the left menu.
- Select View Tax Summary.
- Compare the following lines to your 2024 return:
- Total Income: Did your earnings increase?
- Total Credits: Is this significantly lower than last year? (Check Schedule 3 and Form 8812).
- Total Payments/Withholding: Did you pay in less through your employer?
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
