IRS reduced the federal refund amount and I don't understand the reason

[risraels]

I checked the Federal refund tracking site and found a notice the refund amount had been reduced by what looks like stimulus checks [$2,400]. They will automatically deposit the balance by Mar 22. I used Turbo Tax and had it do all the reviews and checks of entries with no problems. 

The reasons they gave in their 'details' window listed five different potential reasons for the reduction. Some of them are just silly. Based on the dollar amount of the reduction I suspect it has to do with stimulus checks.

I have PDF files of the reduction notice and the 'details' notice.

How do I get some support from Turbo Tax to help me understand what went wrong?

[KathrynG3]

To contact TurboTax, see: What is the TurboTax phone number?

Be careful with any solicitation claiming there is an issue. If your returns are accepted and approved without issue, then any further contact with the IRS should be verified. 

The only way there would be an issue would be if the stimulus payments were received, but also reported as missing on the Recovery Rebate Credit. 

For more information, see: Avoid scams: Know the facts on how the IRS contacts taxpayers

Economic Impact Payment Information Center — Topic D: Receiving My Payment | Internal Revenue Servic...

Recovery Rebate Credit — Topic E: Receiving the Credit | Internal Revenue Service

[risraels · Accepted solution]

Turned out the reduction was correct and the problem was caused by me expecting a stimulus check delivered in Jan 2021 as being 2021 income. Turbo Tax did not see the January deposit, so they thought I had not received it in 2020. That triggered the missing stimulus check which triggered the worksheet creation for a rebate which caused the excess refund. The IRS was correct, the Turbo Tax app was doing what it is supposed to, and I got an education. I'll change this thread to solved if I can figure out how to do that.

[dustin470]

Have a similar issue, I believe.

I put all of my stimulus information in correctly. I received my second stimulus check in December, so there shouldn't have been any problems with TurboTax calculating my tax base for 2020. 

I just received my federal return and it is 600$ less than what TurboTax stated. I went to the IRS.gov Refund Status Results link I found on TubroTax. I put my info in and saw that the IRS had reduced my refund. When I clicked on details, it said one of the following issues happened:

• The Social Security number of one or more individuals claimed as a qualifying dependent was missing or incomplete. (I don't have a dependent.)
• The last name of one or more individuals claimed as a qualifying dependent does not match our records. (No dependent.)
• One or more individuals claimed as a qualifying dependent exceeds the age limit. (Again, no dependent.)
• Your adjusted gross income exceeds $75,000 ($150,000 if married filing jointly, $112,500 if head of household). (Not true.)
• The amount was computed incorrectly. (Bingo.)

My taxes were incredibly straightforward this year. Single filing, no dependents, standard deduction, no outside income. I received both stimulus checks, totaling 1200$, both in 2020. Yet somehow TurboTax apparently either messed it up or there is an error.

So I went through the virtual help chat bot thingy and asked to speak to a tax specialist to see what went wrong. I got my first callback 40 minutes later to then get stuck in some hold purgatory for another 40 minutes without being able to talk to anyone. I submitted another request for a callback and talked to someone who informed me that I couldn't speak to a tax specialist because I hadn't purchased live support. 

It seems that unless you pony up the money for the 24/7 live support with TurboTax, you have ZERO opportunity to talk to someone about potential issues with my return. Which makes me wonder, what exactly am I paying for? Apparently, even though I purchased Max Benefits, I'm unable to get any help short of this community board.

I will be honest. I'm infuriated, and this will be my last dance with Turbo Tax after many years.  I asked if there was a customer support person I could complain to and was told it was virtually impossible to reach anyone like that. This is pathetic and insulting. You won't have this stooge to kick around any longer.

[JoannaB2]

Yes, IRS may have adjusted your income tax refund. On the Recovery Rebate Credit form, there are 2 questions that need to be accurately answered: on line 16 , "How much EIP1" received, enter $2,400 if married and on line 19 "How much EIP2" received, enter $1,200 if married.  If you accidentally entered 0 on either one of the questions, IRS will reconcile and will do an adjustment.

In 2020, the IRS issued two Economic Impact Payments as part of the economic stimulus efforts. The first payments were up to $1,200 person and $500 per qualifying child. The second payments were up to $600 per eligible person and $600 per qualifying child. For 2021, eligible taxpayers who did not receive the full amount, can claim it as the Recovery Rebate Credit when filing a 2020 tax return

[dustin470]

And as I mentioned in my first post, I DID enter the correct information in the Recovery Rebate Credit form, listing BOTH stimulus payments as asked. So why am I getting an adjustment???

It would be nice if I could actually speak with someone about this instead of messaging back and forth about assumptions.

[JoannaB2]

Yes, its adjusted not because you owe but based on the answers on line 16 and 19 of Recovery Rebate Credit Form.  It’s important that you enter the correct amount of each stimulus payment you received. The first stimulus payments were made between April and September of last year, while the second round of payments were delivered during January and February of 2021.

[Catfish58]

I had the same thing happen except mine was reduced by $1,200. I got the same reply from IRS.gov as you did. None of it made any sense at all. I believe the stimulus we recieved, we are paying back. Makes me wonder what the 2021 refunds/payments will look like. All it asks for doing the taxes is did you recieve your stimulus and for what amount. Seems kinda strange the amounts are the same. Will DEFINITLY not use TurboTax next year!!

[bataik]

why?

[VolvoGirl]

Why what?

A common adjustment is if you claimed the Recovery rebate credit on 1040 line 30 when you already got the Stimulus payment or got the second one after you filed or reported the wrong amounts or entered the wrong amounts in the 2 boxes.  If you entered the total you got for both rounds in the same box it would think you didn't get the other one.  The IRS knows how much they already sent you.  You might have tried to claim it again on line 30.

Look at your return.  The Stimulus payments do not show up anywhere as taxable income so you are not being taxed on it.  And it's not being subtracted anywhere.

[bataik]

transcipt from IRS does not reflect $9600 alimony I paid out