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My federal tax refund for 2021 was reduced, need to understand why, got multiple choice reasons from IRS, none seem to apply, what should i do?

multiple choice reasons:
SSN was missing or incomplete - not true
Last Name of qualifying dependent does not match - not true
One or more individuals claimed as dependent exceed age limit ?- don't know my daughter is 28
AGI income exceeds $75K - not true
Amount wa computed incorrectly - not true
all choices relate to Recovery Rebate Credit ( recieved $1400) but got letter saying I received $2800

What should I do ASAP before 11/28/2022
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3 Replies

My federal tax refund for 2021 was reduced, need to understand why, got multiple choice reasons from IRS, none seem to apply, what should i do?

You got the letter that gives the possible reasons for a reduced refund---the last one---calculation error--is the catch-all that they use for everything else.

 

 

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 per person---it is likely to be a mix up regarding the 3rd EIP payment.    If you received the 3rd stimulus check of $1400 per person in 2021 then you got letter 6475 from the IRS about it.   You needed to enter the amount you received.   If you already received that money then line 30 on your Form 1040 should have been blank.

 

 

 

 

  If it is short by $1800 or  $1500 or  a multiple of that amount  ---   maybe a mixup regarding the advance child tax credit payments. If you received monthly child tax credit payments of $250 or $300 per month between July and December of 2021, then you got letter 6419 from the IRS, and you were required to enter the amount of the advance payments.   Only the remaining amount of the CTC should have been on line 28 of your Form 1040.

 

The IRS knows how much they sent to you for the 3rd stimulus check and they know how much they sent for advance child tax credit payments.   If you answered something incorrectly on your tax return then the IRS made a correction that resulted in a reduced refund for you. 

 

 

 

 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 or why you owe more.   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...

 

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.

**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.**

My federal tax refund for 2021 was reduced, need to understand why, got multiple choice reasons from IRS, none seem to apply, what should i do?

And....check online accounts for BOTH spouses.   They sent letter 6475 to each spouse and you had to enter the amount from each of the letters.   If you only entered $1400 but you and spouse each received the $1400 per person, that is your problem.

**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.**

My federal tax refund for 2021 was reduced, need to understand why, got multiple choice reasons from IRS, none seem to apply, what should i do?

That is a generic list of possible errors ... the most likely one is the last one for the MATH error.  

 

If you got the stimulus advance you cannot also get the credit and the IRS will adjust your return if they believe you are not allowed the credit.  

 

A reduction in your refund for the recovery rebate credit is most often caused by user error---when you were asked how much you received for the third stimulus check -- the one for $1400 per person sent out from March to May last year----did you enter the total amount correctly?   Did you use the amount from BOTH spouse's letters 6475?   Or did you say you did not receive the full amount and thereby put an amount on line 30 of your Form 1040?  If you received the full amount already then your line 30 should have been blank.   There should only be an amount on line 30 if you did NOT receive all of the 3rd stimulus.

 

 

Try checking your online account with the IRS

 

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

 

Does the IRS show that you received a $1400 per person stimulus or EIP check in 2021?   Did you receive it?   When you were asked on your tax return did you say no?   Was there $1400  per person on line 30 of your tax return?

 

If the IRS says you got $1400 last year but you did not receive it you can have it traced.

 

LOST THIRD STIMULUS CHECK

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

 

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.

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