DavidD66
Employee Tax Expert

After you file

It is not unusual for the IRS to adjust the amount of a refund and send less that what showed on the return.  One reason that refunds are adjusted is due to a Tax Offset.  If you owe money because of certain delinquent debts, the IRS or the Department of Treasury's Financial Management Service (FMS), which issues IRS tax refunds, can offset or reduce your federal tax refund or withhold the entire amount to satisfy the debt.

 

If you owe federal or state income taxes your refund will be offset to pay those taxes. If you had other debt such as child support or student loan debt that was submitted for offset, FMS will take as much of your refund as is needed to pay off the debt, and send it to the agency authorized to collect the debt. Any portion of your refund remaining after an offset will be refunded to you.

 

Other reasons your refund may have been changed is a data entry error, such as transposing a couple of numbers, or omitting a tax form such as W-2 or 1099.  Whatever the reason, the IRS will send you a letter explaining why they adjusted your refund.

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