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Level 2
March 7, 2022
Question

Why was my refund reduced?

  • March 7, 2022
  • 4 replies
  • 11 views

My federal income tax was delayed beyond normal wait times. However it has now changed, and it says that my refund was reduced. I call the irs to see if I have any tax offsets that I don’t know about, and the IRS says I have none. So where is my money? And where did it go?!

    4 replies

    Level 15
    March 7, 2022

    The IRS does not provide any information to TurboTax after you file your tax return, so no one at TT knows why your refund is being reduced.   The IRS will send you a detailed letter in several weeks to explain the reason(s).  Common possibilities include mistakes made with the 3rd EIP payment or the advance child tax credit payments received in 2021.

    **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.**
    KrhodesjrAuthor
    Level 2
    March 7, 2022

    The irs says I have no tax offsets. I filed my taxes the same as I have been on TurboTax for the past 5-7 years, and never had an issue like this before. However, the IRS and TurboTax cannot explain what is going on and pointing fingers at each other. 

    Level 15
    March 7, 2022

    @Krhodesjr There are other possible reasons for a reduced refund.  An offset occurs for such things as back taxes owed or delinquent child support.   If you made a mistake when you entered the amount for your 3rd EIP payment or your advance child tax credit payments, that would not be an "offset".   Sorry---no one at TurboTax can see your return and we do not know why your refund was reduced.   The IRS letter you will receive will explain why.

    **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.**