Your Tax Refund May Be Smaller This Year—Here's How to Avoid ‘Sticker Shock'

The end of Covid-era boosts to tax breaks mean you could be in for a bigger tax bill or a smaller refund.

Whether your refund is changing likely depends on whether you took advantage of a number of Covid-era tax breaks available to taxpayers for tax year 2021. If you did, there's a chance you could owe a bigger tax bill in 2022 — or be owed a smaller refund.Remember those? It may feel like a long time ago now, but you may have received a $1,400 stimulus payment in 2021.

There is still time to earn some proverbial extra credit in the form of lowering your taxable income. If you have a health savings account, for instance, you have until Tax Day to make contributions that can be deducted from your 2022 income. For 2022, single payers could contribute up to $3,650, and families up to $7,300.

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