If your refund was adjusted by the IRS, it could be due to a decrease or elimination of the Recovery Rebate Credit as shown on Line 30 of your 1040 tax return. The IRS automatically adjusts your refund amount for the credit amount that you were not qualified for.
If you received the first and/or second stimulus payments, and did not indicate that you received those stimulus payments as you are completing your return, then the Recovery Rebate Credit would have populated on your return.
Per the IRS, if you entered an amount on line 30 but made a mistake in calculating the amount, the IRS will calculate the correct amount of the Recovery Rebate Credit, make the correction to your tax return and continue processing your return. If a correction is needed, there may be a slight delay in processing your return and the IRS will send you a notice explaining any change made.
2020 Recovery Rebate Credit — Topic G: Correcting issues after the 2020 tax return is filed
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