Why was my refund reduced?

[Krhodesjr]

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?!

[xmasbaby0]

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.

[Krhodesjr]

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. 

[xmasbaby0]

@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.

[Cynthiad66]

TurboTax does not process your return for refund.  You use TurboTax to prepare your return to submit to the IRS.  Once the IRS accepts your return, they use the information submitted plus information that they have in their system to process your return for refund.

TurboTax does not receive any information about your return after the return has been accepted by the IRS.  Privacy Policies prevent IRS from sharing information with the IRS.  The IRS will only send information or respond to YOUR inquiries.

The IRS will provide written explanation of any adjustment that they make to your refund.  Nothing you can do until you receive that notification which still gives you the right to Appeal the adjustment.  All is Not Lost!!

@Krhodesjr