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troubled too
New Member

2020 refund was $2000.00 less than my return stated. Why?

 
4 Replies
DoninGA
Level 15

2020 refund was $2000.00 less than my return stated. Why?

Once a tax return has been Accepted by the IRS or a State, TurboTax receives no further information concerning the tax return or the status of any tax refund.

 

Go to this IRS website for federal tax refund FAQ's - https://www.irs.gov/refunds/tax-season-refund-frequently-asked-questions

 

Why is my refund different than the amount on the tax return I filed? 

All or part of your refund may have been used (offset) to pay off past-due federal tax, state income tax, state unemployment compensation debts, child support, spousal support, or other federal nontax debts, such as student loans. To find out if you may have an offset or if you have questions about an offset, contact the agency to which you owe the debt.

We also may have changed your refund amount because we made changes to your tax return. This may include corrections to any incorrect Recovery Rebate Credit amount. You’ll get a notice explaining the changesWhere’s My Refund? will reflect the reasons for the refund offset when it relates to a change in your tax return.

Tax Topic 203, Refund Offsets for Unpaid Child Support, Certain Federal and State Debts, and Unemplo... has more information about refund offsets.

troubled too
New Member

2020 refund was $2000.00 less than my return stated. Why?

My turbo tax return for 2020 has remained the same as submitted.  I have not received any notice from turbo tax as to why the reduction in refund.  I do NOT have any of the reasons for reducing the refund as you suggested.  Please advise.

DoninGA
Level 15

2020 refund was $2000.00 less than my return stated. Why?


@troubled too wrote:

My turbo tax return for 2020 has remained the same as submitted.  I have not received any notice from turbo tax as to why the reduction in refund.  I do NOT have any of the reasons for reducing the refund as you suggested.  Please advise.


TurboTax would not be sending a reason for the reduction in your federal tax refund.  Only the IRS would be sending a notice in the mail explaining why the tax refund was reduced.   The amount of tax refund on the TurboTax Tax Home web page and on the tax return will not change since TurboTax receives no information whatsoever from the IRS concerning a tax refund.

The IRS usually mails those notices within a few weeks after the tax refund has been issued.

xmasbaby0
Level 15

2020 refund was $2000.00 less than my return stated. Why?

@troubled too TurboTax does not receive any information from the IRS when they reduce your refund.  No one at TT knows why the refund was reduced.   A common reason this year is for the recovery rebate credit--many people made mistakes with that.  But you will have to wait for the letter that the IRS will send to you.

 

Did you enter  ALL of the stimulus money that you had already received correctly in the recovery rebate credit section when you prepared your 2020 return?  The IRS cross checks and if you did not enter all of the money you received, they recalculate your refund.

 

 

MY REFUND WAS LESS THAN I EXPECTED

There can be a number of reasons why your refund was less than the amount you expected. First of all, look carefully at your actual tax returns.  There is sometimes confusion about the amount of refund to expect when users misinterpret the “summary” they saw in TurboTax. The amount of your refund is on your tax return.  Federal refund is on line 34 on Form 1040  State tax forms are all different so we cannot tell you what line to look at on your state form.  BUT it is important to actually LOOK at your tax return forms yourself and see the amounts of your tax refunds and/or tax due.  A lot of confusion would be avoided by doing that.

 

TurboTax does not receive feedback from the IRS regarding money that was offset from your refund.  If you owed back taxes, child support, student loan debt, etc. you will receive a letter of explanation from the IRS in several weeks.  The WMR site will contain a message regarding your offset.  It is also possible that the IRS caught a mistake you made and reduced your refund. 

 

A possible reason for the reduction could be that the recovery rebate credit was completed incorrectly and you may have entered the amount of stimulus already received wrong, which could have reduced the refund you thought you were seeing.

 

 

 It is also possible that your state reduced your refund for debts owed in your state—if the state reduced your state refund you will receive a letter from the state.

 

https://www.irs.gov/uac/tax-refund-offsets-pay-unpaid-debts

 IRS Treasury Offset Program Call Center at 1-800-304-3107

 

Be aware also that your Federal refund and state refund do NOT come together.  Federal and state tax returns are processed by two completely separate entities.  There is no rule as to which one will come first,

 

Did you choose to have TT fees deducted from your Federal refund?  (Remember that if you did that, you also agreed to an extra refund processing fee of $39.99)

How can I see my TurboTax  fees?   

https://ttlc.intuit.com/questions/2565973-how-do-i-review-my-fees-in-turbotax-online

 

 

 https://www.irs.gov/uac/tax-refund-offsets-pay-unpaid-debts

 

 

https://ttlc.intuit.com/community/refunds/help/what-is-a-refund-offset/00/26301

 

Reduced Refund      https://www.irs.gov/taxtopics/tc203

 

 

 NOTE: You can contact the IRS Treasury Offset Program Call Center at 1-800-304-3107 to ask if they have an offset for you on file. TurboTax would not have that information.

 

https://turbotax.intuit.com/tax-tips/tax-payments/who-can-garnish-an-income-tax-refund/L7cPPzDyc

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
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