A significant tax refund indicates you have overpaid the IRS throughout the year. This excess money could have been invested or used for monthly expenses instead of sitting with the government earning you zero interest. The goal should be tax accuracy, not a large refund.
Moving into a higher tax bracket does not mean your entire salary is taxed at that new rate. Only the income exceeding the previous bracket's threshold is taxed at the higher percentage. Therefore, earning more money always results in higher take-home pay.
A tax deduction lowers your taxable income, saving you an amount proportional to your tax bracket. In contrast, a tax credit directly subtracts from your final tax bill, offering a full dollar-for-dollar reduction. Prioritizing actions that yield credits provides a much larger financial benefit.