I received an automatic deposit to my bank account from Green Dot Bank recently for my 2020 taxes . My refund from Turbo tax shows $9,905.00 and the deposit from Green Bank was for $7596.22. Turbo Tax charged my bank account approx. $181.00 a month ago since my refund had not come through yet, which I agree with. The problem is- why is my auto deposit $2308.78 less than turbo tax said I was getting???????????
It is possible that the IRS reduced your refund and if they did that, you will receive a letter from the IRS in a few weeks.
Did you enter ALL of the stimulus money that you had already received correctly in the recovery rebate credit section when you prepared your 2020 return? The IRS cross checks and if you did not enter all of the money you received, they recalculate your refund.
MY REFUND WAS LESS THAN I EXPECTED
There can be a number of reasons why your refund was less than the amount you expected. First of all, look carefully at your actual tax returns. There is sometimes confusion about the amount of refund to expect when users misinterpret the “summary” they saw in TurboTax. The amount of your refund is on your tax return. Federal refund is on line 34 on Form 1040 State tax forms are all different so we cannot tell you what line to look at on your state form. BUT it is important to actually LOOK at your tax return forms yourself and see the amounts of your tax refunds and/or tax due. A lot of confusion would be avoided by doing that.
TurboTax does not receive feedback from the IRS regarding money that was offset from your refund. If you owed back taxes, child support, student loan debt, etc. you will receive a letter of explanation from the IRS in several weeks. The WMR site will contain a message regarding your offset. It is also possible that the IRS caught a mistake you made and reduced your refund.
A possible reason for the reduction could be that the recovery rebate credit was completed incorrectly and you may have entered the amount of stimulus already received wrong, which could have reduced the refund you thought you were seeing.
It is also possible that your state reduced your refund for debts owed in your state—if the state reduced your state refund you will receive a letter from the state.
IRS Treasury Offset Program Call Center at 1-800-304-3107
Be aware also that your Federal refund and state refund do NOT come together. Federal and state tax returns are processed by two completely separate entities. There is no rule as to which one will come first,
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)
How can I see my TurboTax fees?
Reduced Refund https://www.irs.gov/taxtopics/tc203
NOTE: You can contact the IRS Treasury Offset Program Call Center at 1-800-304-3107 to ask if they have an offset for you on file. TurboTax would not have that information.
That's close to 2,400. That is probably for the first 2 Stimulus payments. Did you have an amount on 1040 line 30 for the Recovery rebate credit? Line 30 is only if you didn't get one or qualify for more.
Did you enter all the Stimulus payments you received? For both you and your spouse?
The first EIP1 was 1,200 (2,400 married) and 500 each dependent under 17. The second EIP2 was $600 for each person.
If you claimed a missing stimulus payment on your return but the IRS took it off you have to ask the IRS. They think they already sent it to you. Did you get the 2nd round after you filed your return? Maybe it went to an account you don't remember. Or you got a check or a card. It was probably easy to miss the debit card in the mail and think it was junk mail. They have to put a trace on it.
How to put a trace on a missing 1st or 2nd Stimulus payment. IRS for Payment Issued but Lost, Stolen, Destroyed or Not Received
See question F3 here, you can expand it to see how to put a trace on it.