When faced with a higher amount due than the year prior, taxpayers generally assume that they’re getting a “bad deal,” that a mistake must have been made or a change to the law out of their favor must have occurred. While these situations do present themselves, an increase in amount due with the return is most often a result of changes to the taxpayer’s situation in the year in question. Consider the following scenarios: You have three children ages 8, 10 and 13. All are “qualifying children” for the sake of the child tax credit. You heard that the credit increased from $2,000 to $3,000 per child in 2021, so you expect a larger refund on your tax return. However, you received advanced child tax credit payments throughout 2021, resulting in half of your total $9,000 of credits to have been paid out before the filing deadline. This would reduce your credit on your return from the $6,000 you would have received in 2020, to $4,500 in 2021, even though your overall credit was higher. You invested in the stock market crash in March of 2021 and decided to sell your shares for a gain in 2021. Unless you made an estimated payment during the tax year, the tax on the gain would be due with your return upon filing. You decided to start a “side hustle” during the tax year. You made an estimated payment based on your marginal Federal income tax bracket, not considering Medicare and Social Security taxes assessed. Additionally, you did not realize that since you are self-employed, you will owe both the employer and employee portion of these taxes, totaling 15.3%. These scenarios are examples of situations that may increase the amount which you will owe or decrease the amount which you will receive as a refund upon the filing of your return. If you are unable to determine what may have caused the change, consult with your tax preparer.