Adjusted Gross Income

[gasbu01]

My Federal Tax refund was less than Turbo Tax stated because the IRS says my Adjusted Gross Income was greater than what the IRS allows for a couple filing jointly. Turbo Tax should have pick this up when I submitted my return. Is there an error in the Turbo Tax program?

Thank you.

[xmasbaby0]

It sounds like you received a generic message that the IRS gives you when they adjust your refund.  Does it also list several other possible reasons for the change in your refund--like something about dependent SSN's, computation errors, etc.?   

TurboTax does not get any information from the IRS after you file your tax return, so no one at TT knows why your refund was less.

You have not mentioned any specific amounts.  Sometimes we can make an educated guess as to the reason for your reduced refund if you mention specific amounts--for example if your refund was short by $1400---it is likely to be a mix up regarding the 3rd EIP payment.   If it is short by $1800 or  $1500 or  a multiple of that amount  ---   maybe a mixup regarding the advance child tax credit payments.   Or---the fees you were supposed to pay for using TurboTax + the "refund processing fee" charged by the third party bank….

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 or $44.99 in CA)

How can I see my TurboTax  fees?   

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

What is Refund Processing Service?

The IRS will send you a letter that explains why your refund was reduced.   Meanwhile it might help you to check your online IRS account.

https://www.irs.gov/payments/your-online-account

https://blog.turbotax.intuit.com/tax-refunds/why-is-my-tax-refund-not-what-i-expected-49240/

https://www.irs.gov/newsroom/questions-and-answers-about-the-third-round-economic-impact-payment-top...

[gasbu01]

Yes my return was $1400.00 less. I believe TUBO Tax ask me if I had received a letter from the IRS concerning the 2021 Economic Impact Payment and it ask me what amount was on the letter and I answered $1400.00. I believe this showed up on Line 30 on my return. I am confused!!!

Thank you

[JamesG1]

You electronically filed your 2021 Federal 1040 tax return, the IRS accepted your tax return but then reduced your refund by the amount of the third stimulus payment.  If this is the case, the IRS may think that you were already issued the third stimulus payment.

It sounds like you received the standard communication from the IRS.  This standard communication was unhelpful to you and is unhelpful to others who post here.

If you did not receive $1,400 for the third stimulus payment, the IRS may think that you were already issued the third stimulus payment.

At your IRS online account, you can find whether a payment was issued to you that you did not receive.  You can also find this information on your tax transcript.

If you need to trace a payment that the IRS says has been issued to you, mail or fax a completed IRS Form 3911, Taxpayer Statement Regarding Refund.

The qualifications for the third stimulus payment are:

• you were a U.S. citizen or U.S. resident alien in 2021, 
• you were not a dependent of another taxpayer’s 2020 tax return, and 
• you have a Social Security number.

There are income limitations are if your adjusted gross income (AGI) is more than:

• $150,000 if married and filing a joint return or filing as a qualifying widow or widower
• $112,500 if filing as head of household or
• $75,000 if filing as a single or as married filing separately. 

[gasbu01]

I went through my bank statements for the year of 2021. January 4 2021 I received $1200.00 and on March 17 2021 I received $2800.00 from the IRS for the Economic Impact Payment. My understanding this is not taxed. On January 12 2022 I received a letter from the IRS with a statement that I had received $1400.00 from the American Rescue Plan for the year 2021. I also found on the IRS web page that this amount does not need to be reported. My 2021 Adjusted Gross Income for the year 2021 was $150,043.00 which is over the IRS allotted amount for a couple filing jointly.

I followed the instructions from Turbo Tax and answered all questions. So I am confused, please advise.

Thank you.

[Cynthiad66]

For tax year 2021 all amounts received during tax year 2021 for EIP or Advanced  Child Tax Credit must be reported on the tax return.  That does not mean they are taxed but they are included in the computation for determining your refund.

If you failed to include the payments on your return, it will affect the amount of refund.  Because to not include the EIP that you received would incorrectly calculate your expected refund.   When you filed, your return was calculated to show that you are owed that payment which, in turn, increased the expected refund.

When you filed, IRS information shows that you did receive the EIP so they will deduct that amount from your expected refund.

The IRS will issue a notice to you in a few weeks that fully explain all adjustments on the return.  TurboTax does not have any information on the adjustments that the IRS made because Privacy Laws prevent sharing information for you protection.

@gasbu01