incorrect refund

[John-project]

I filed my 2020 fed, it was accepted by the IRS on Feb 11. I checked my bank account today and saw the refund was direct deposited. Only problem, the amount is incorrect. Line 35a on my return says one value, but the refunded amount is $147 short. Now what do I do?

[SweetieJean]

Is the difference your TT fees?  If not, the IRS will be sending you a letter. (One possibility is that you made a data entry error, or forgot to claim some income).  The IRS does not notify TT.

[John-project]

No, I have no TT fees and I did not buy bonds or "siphon" off any of the refund (e.g. apply to estimated 2021). How do I find out about "entry errors" or "unclaimed income"?

[John-project · Accepted solution]

To those who may find this thread

I resolved the problem. I neglected to include the amount of our second COVID relief check. When I updated my 2020 tax forms with that amount, it nullified the "Recovery Rebate Credit" (form 1040 line 30) which just happened to be the $147 difference.

I do not have to wait for a letter from the IRS explaining why our 2020 refund was not the amount I expected because I signed into my IRS account and the reason was spelled out clearly.

[pjrey]

HELP! tried calling the IRS 3 times with crazy long hold times only to be hung up on. Ready to pull my hair out. my 1040 is off over $2,500. I have used TT for over 15 years.. always importing last years data.. and refunds have always matched up. What are my options here? The Govt is a joke!

[DoninGA]

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@pjrey wrote:

HELP! tried calling the IRS 3 times with crazy long hold times only to be hung up on. Ready to pull my hair out. my 1040 is off over $2,500. I have used TT for over 15 years.. always importing last years data.. and refunds have always matched up. What are my options here? The Govt is a joke!

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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 changes. Where’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.

[pjrey]

nothing changed.. still married, no delinquent taxes, no student loans, no dept at all! turbo tax told me one number, and the IRS sent me another.. has never happened in my 15 years of using turbotax desktop. again, this isn't a few bucks, this is over $2,500 usd

[VolvoGirl]

A common adjustment is if you claimed the Recovery Rebate Credit on 1040 line 30 when you already got the Stimulus payments or got the second one after you filed or reported the wrong amounts. Do you have an amount on line 30? And you had to report the right amount in each box. If you put the total in 1 box it would give you the other amount again.

[pjrey]

i do have an amount on line 30.. but shouldn't turbo tax know this and adjust accordingly?

[VolvoGirl]

Is the amount on line 30 wrong?  Did you already get the full Stimulus amounts?  You had to enter the Stimulus payments you already got and in the right box or Turbo Tax would think you didn't get it or you qualified for more.  If you filed early then maybe you hadn't got the second Stimulus payment yet and it came after you filed.  The IRS knows how much they sent you.  

[pjrey]

no, line 30 is correct... never received a second stimulus check (in 2020, or in 2021 thus far).... and even if i did.. that would in no way justify taking out over 2.5K in my refund

[VolvoGirl]

Just had a thought.  Maybe what you got was the 3rd new stimulus check and not your refund.  Those started going out recently.  it's 1,400 per person or less if your AGI is high.  

[pjrey]

maybe i wasn't clear.. i was EXPECTING 2.5K more (from what TurboTax told me my federal return would be. what was deposited in my bank account was 2.5k LESS... not more

[VolvoGirl]

Yes we understand.  How much did they send you? I'm saying maybe it is not for your refund.  But is the new 3rd Stimulus payment.  Maybe your refund hasn't come yet.

And you know Federal and state come separately from different places at different times.   At the end Turbo Tax just shows you the net federal and state combined. But that is only for your info. You will still get the full refund and need to pay a tax due. 

[pjrey]

no, is my fed tax return. i logged into irs.gov and checked on my refund. it says the amount has been lowered and here is their reason why

"We changed the amount claimed as Recovery Rebate Credit on your tax return. The error was in one or more of the following:

• The Social Security number of one or more individuals claimed as a qualifying dependent was missing or incomplete.
• The last name of one or more individuals claimed as a qualifying dependent does not match our records.
• One or more individuals claimed as a qualifying dependent exceeds the age limit.
• Your adjusted gross income exceeds $75,000 ($150,000 if married filing jointly, $112,500 if head of household).
• The amount was computed incorrectly."

i import the data from my previous year, like i have been doing for the last 16 years...

i double checked all names, and social security numbers, and everything is correct.

when i try calling, we are put on hold for hours, and then they hang up.

our gov runs like a well oiled machine...