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Gayle2287
Returning Member

There was a fee deducted from my tax refund that wa direct deposit. It wasnt the IRS or my bank. Did Turbo tax do that?

My refund from IRS was supposed to be $901.  Only $821 was direct deposited.  Why?
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4 Replies

There was a fee deducted from my tax refund that wa direct deposit. It wasnt the IRS or my bank. Did Turbo tax do that?

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.

 

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

 

 

 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.

**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.**

There was a fee deducted from my tax refund that wa direct deposit. It wasnt the IRS or my bank. Did Turbo tax do that?

@Gayle2287  wrote:  "it wasn't the IRS or my bank"

 

Are you saying the direct deposit was from a third party such as Tax Products PE3 SBTPG (or similar description)?

 

Did you use Online Deluxe for a Federal return and chose to pay the fee out of the Federal refund?

 

Online Deluxe was $40 for a Federal return prior to the March 1 price increase.   If that's what you used, then $40 plus the $40 service fee for that payment method would equal $80.  Sometimes there is also sales tax.

There was a fee deducted from my tax refund that wa direct deposit. It wasnt the IRS or my bank. Did Turbo tax do that?

I received my  income tax return and  the amount was incorrect. I only received  $890.42.My refund amount was supposed  to be $1115  after the $169.00 fee to prepare mybtax refund.I need the rest deposited into my account. 

ee-ea
Level 15

There was a fee deducted from my tax refund that wa direct deposit. It wasnt the IRS or my bank. Did Turbo tax do that?

@Donna Morris08 

State refunds are paid separately from the Feds. How much is the state refund? Has it arrived? 

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