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savinal1
New Member

My refund that was direct deposited is significantly lower than was approved. I was approved for 1,964.00 however only 1,483.74 was deposited into my account.

My MA state return says it will be $130.00.
2 Replies

My refund that was direct deposited is significantly lower than was approved. I was approved for 1,964.00 however only 1,483.74 was deposited into my account.

You may receive a reduced refund for several different reasons.

1.      You chose to have your TurboTax fees deducted from your refund. If this is the case the amount you receive will be the amount shown as your refund on your return less your TurboTax fees and less the $34.99 refund processing fee charged by the 3rd party bank for processing your refund.

2.     You were expecting the total amount of your federal and state refunds. You usually do not receive your federal and your state refunds at the same time. Since federal refunds are processed by the IRS and your state refund is processed by the state the two are unrelated. The IRS and the states generally do not coordinate their processing or deposit schedules.

3.     Your refund was subject to an “offset”. This is usually when you owe back taxes or child support but can also include amounts owed on state income tax, unemployment compensation debts, spousal support, or other federal nontax debts, such as student loans. If your refund is reduced for a federal tax debt you will receive a notice from the IRS. If your refund is reduced for another type of debt you will receive a notice from the Bureau of the Fiscal Service (BFS). You can also call the BFS at 800-304-3107.

4.     The IRS withheld a part of your refund while they do further verification for a particular credit like the Earned Income Credit. In this instance the IRS will send you a partial refund now and will release the remainder of your credit once they have completed the verification process.

5.     The IRS changed something on your tax return. If this happens the IRS will send you a letter explaining the changes, usually within 14 days.

If the IRS withheld a portion of your refund or made changes to your tax return and you do not receive a letter within 14 days you can call the IRS at 800-829-1040. If you call this number before the 14 days are up, though, they will not have any information to give you. See #9 of the IRS’s Ten Things to Know About Tax Refunds.


My refund that was direct deposited is significantly lower than was approved. I was approved for 1,964.00 however only 1,483.74 was deposited into my account.

My refund was reduced by $744.  Electronic return accepted 3/29/20 after Turbo Tax said all was correct.  Reduced refund received 4/13/20.   Still no letter of explanation 6/30/20.   Jumped through hoops calling the 800#  and online with auto system.  They have "no information about my return".  Offices apparently still closed according to recording.   No offsets apply to me.   Need to know why they changed my return, if they did, so I can see if I need to file a 1040X.   Sent a letter with my 2nd Qtr. Estimate asking them to send a letter of explanation...…...nothing still.  

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