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The IRS reduced my refund amount

 
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8 Replies

The IRS reduced my refund amount

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 line 20 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.

 

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.

https://www.irs.gov/uac/tax-refund-offsets-pay-unpaid-debts

 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?   

https://ttlc.intuit.com/questions/2565973-how-do-i-review-my-fees-in-turbotax-online

 

https://www.irs.gov/uac/tax-refund-offsets-pay-unpaid-debts

 

 

https://ttlc.intuit.com/community/refunds/help/what-is-a-refund-offset/00/26301

 

Reduced Refund     https://www.irs.gov/taxtopics/tc203

**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.**

The IRS reduced my refund amount

My refund was reduced by $2800.00. This was due to a Recovery Rebate Credit of $2800.00. Can you tell me why this happened

The IRS reduced my refund amount

What is a Recovery Rebate Credit?

The IRS reduced my refund amount

You had 2800 on 1040 line 30 for the Recovery Rebate Credit but the IRS records show they already sent it to you.   Line 30 is only if you didn't get the full amount or qualify for more.  A lot of people answered the questions wrong and tried to claim the credits again. Double check your bank statements to see what the IRS sent you during the year for the 3rd Stimulus payment and Advance Child Tax Credit. And check your IRS account (both accounts if married).
https://www.irs.gov/payments/your-online-account

 

The IRS reduced my refund amount

My refund was reduced by $2800.00 from the $10456.00 you say I should have received!! Do you know why this happened?

The IRS reduced my refund amount

Can  you give me a phone number where I can call and talk to someone from Turbo Tax about this reduction of $2800.00

The IRS reduced my refund amount

Read the other comments above yours. TurboTax has no information about your return once it is filed. They can’t help you . 
You claimed the recovery rebate a/k/a stimulus checks.  The IRS records show they already sent you the stimulus payments so they reduced your refund. 
check your bank records for March 2021 when stimulus checks were issued. 
You can file Form 3911 with the IRS to trace the payment if your records don’t reflect it. It will take several weeks to get a response. 
That’s your only option now. 

The IRS reduced my refund amount

That is the 3rd Stimulus payment.   Didn't you get that one?  The 3rd Stimulus payment started going out in March 2021 and is for 1,400 for each person listed on your tax return, no age limit. The IRS used your 2020 (or 2019) return to send the checks out fast. If your 2021 return changes and you qualify for more you can claim the extra as the Recovery Rebate Credit on 1040 line 30. But line 30 is only if you didn't get the full amount or qualify for more. Not the amount you already got. The IRS also sent out letter 6475 to tell you how much they sent you . If you are married then each spouse should get a letter for half.

 

Double check your bank statements and Check your IRS account (both 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...

 

 

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