I Asked ChatGPT What To Do If You’re Expecting a Smaller Tax Refund in 2026 — Here’s What It Said
Written by
Jacob Wade
Edited by
Rebekah Evans
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If you’re not getting a big tax refund this year, it can sting. Especially if you’re planning on paying bills with it or adding to your savings account.
With ever-changing tax laws, I decided to ask ChatGPT what to do if you’re expecting a smaller-than-normal tax refund. Here’s what it said.
Adjust Your Withholding Now
ChatGPT suggested adjusting your withholding if you’d prefer a larger refund.
Smaller tax refunds usually means you aren’t withholding as much from your paycheck. This can be nice if you want a slightly larger paycheck all year, but can make your tax refund much smaller (or nonexistent).
To learn how much you should withhold to get the refund you want, use the IRS Tax Withholding Estimator on the Internal Revenue Service website to help you figure it out. Then you’ll want to reach out to your employer and adjust your withholding using IRS Form W-4.
Revisit Your Tax Credits and Deductions
ChatGPT suggested taking a look at your tax credits and deductions from past years and comparing them to this year. If your income or living situation changed, it could have affected some large credits you used to qualify for.
Credits like the child tax credit (CTC) or education credits can be worth thousands of dollars, so make sure you don’t miss those if you might qualify.
Boost Tax-Advantaged Contributions
ChatGPT also suggested increasing contributions to tax-deferred accounts. Accounts like your 401(k) or a traditional IRA can lower your taxable income and potentially boost your tax refund.
Health savings accounts (HSAs) can also be a great place to save money for medical expenses and get a larger tax deduction as well (if you qualify).
Did you know that you can fund your traditional IRA up until tax day 2026? So you might possibly increase your refund while saving more for retirement at the same time.
Build a Buffer Fund
If you are expecting a smaller refund, ChatGPT suggested focusing on building a “buffer fund” to help cushion the blow.
A simple calculation would be to figure out how much less you expect to get and start saving to have that amount set aside next year. This means if you are getting $1,800 less that expected, start setting aside $150 per month to make up for it.
Run the Numbers Before You Panic
Finally, ChatGPT suggested not panicking, but to actually figure out where the difference is coming from. For example, if your refund dropped because your income increased or you withheld less last year per paycheck, then maybe you’re still coming out ahead.
“Compare total tax paid year over year,” ChatGPT said, to figure out if you’re still doing fine or need to adjust something.
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