@Brianp81 BOTH your federal and state refunds were reduced? Something else is going on. The state would not reduce your state refund for child tax credit or the recovery rebate credit. Did you owe back tax to the the state? Only the state can tell you why your state refund was reduced. Or do you owe delinquent child support?
There are many possible reasons for the IRS to reduce your federal refund. If you owed back tax or child support those would be reasons, and as already stated, two very common reasons this year for reduced federal refunds are mistakes made with the recovery rebate credit and/or the child tax credit. Lots of people made incorrect entries when asked how much they received for the third stimulus checks or for the advance child tax credit payments sent between July and December.
You will be receiving letters from the IRS and your state that explain why your refunds were reduced. Wait for the letters.
**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.**
