Why is my tax refund smaller this year even though nothing major changed?

Refunds shift for subtle reasons. The IRS adjusts brackets, the standard deduction, and credit amounts for inflation each year, which changes withholding tables. If you got a raise, more income may have landed in a higher bracket. Expiring or reduced credits, a change in the number of dependents you can claim, a side gig with no withholding, or investment income can all shrink a refund. Even a small change to how your employer ran withholding matters. Compare this year's Form 1040 line by line with last year's to spot the driver. A smaller refund is not automatically bad; if your take-home pay rose, you simply pre-paid less. The Tax Health assessment at wealthserene.com/assessments/tax-health can help you diagnose the shift.