Tax return $1600 lower than it was supposed to bo

[jakemsmith00]

My tax return was supposed to be $3800. I got my state return & was owed $2800. I finally got my federal but it was $1200 and from some company called TPG products? I am owed $1600 . Never had this problem any other year and I see this is a problem for a lot of people what do we do?

[VolvoGirl]

Are you saying your federal refund is missing 2800?

2,800 is the 3rd Stimulus payment.  It was 1400 for each person.  Did you already get the Stimulus payment they sent out last year starting March 2021? The IRS has records that show you were sent the 3rd stimulus payment so they removed the 2,800 Recovery Rebate Credit.

 Do you have an amount on 1040 line 30?  You might have tried to claim it again.   Line 30 is only if you didn't get the full amount or qualify for more. 

Did you get IRS letter 6475 saying what they sent you?  If you are married you should each get letter 6475 for half.

Double check your bank statements and check your IRS account to see what they sent you.  Check both IRS accounts if married.

Your Online Account | Internal Revenue Service

If the IRS thinks they sent it to you but you didn't get it request a trace for a missing third Stimulus payment

https://www.irs.gov/newsroom/questions-and-answers-about-the-third-economic-impact-payment-topic-j-p...Your Online Account | Internal Revenue Service

[VolvoGirl]

Or if it is missing 1600 that is probably 1400 for the Recovery Rebate Credit on line 30 and the Turbo Tax fees.   TPG is the 3rd party bank your refund goes though to take the fees out.  There is also a Extra $40 Refund Processing Service charge (45 in California) for that.   

[jakemsmith00]

I am missing 1600 . 

[NCperson]

@jakemsmith00 

please look at Lines 28 and 30 of your tax return.  

during the interview process you were asked to enter how much you received for the Stimulus and the Advance Child Tax Credit. 

If you entered a number that did not match the IRS records, that inflated the refund you were seeking and the IRS adjusted Line 28 (child tax credit) or Line 30 (stimulus) to match their records.  

what do you have on Lines 28 and 30 of your tax return?

[SweetieJean]

Per the IRS:

If your refund amount is different than you expected, it may be because we made changes to your tax return including corrections to any Recovery Rebate Credit or Child Tax Credit amounts.  Also, all or part of your refund may have been used (offset) to pay off past-due tax or debts. Refer to the FAQs below:

Tax Season Refund Frequently Asked Questions | Internal Revenue Service (irs.gov)

[jcobb29j]

Jake, don’t let up. They are committing fraud. This has happened to other people too, as well as overcharging to which Indiana AG filed lawsuit. 

[xmasbaby0]

@jakemsmith00 

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.   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.

Updated IRS FAQ about recovery rebate credit

https://www.irs.gov/pub/taxpros/fs-2022-27.pdf