HopeS
Expert Alumni

Deductions & credits

It depends. Typically if the IRS adjusts your refund they will send a notice/letter explaining the reason for the adjustment.

 

Please compare the return you filed to see what your refund should have been vs the amount you received. If you claimed earned income credit, the amount will be shown on line 27 of your Form 1040. If your refund was short by the amount on line 27, then yes it means the IRS denied your earned income credit.

 

Below is one of the main reasons the IRS might change your refund:

 

The IRS found a discrepancy in your return

The IRS reviews the information you entered in your return and compares it with what they have in their database. If there are any discrepancies, they make adjustments accordingly and send your reduced refund.

Some common errors found are incorrect advance Child Tax Credit amounts, which can cause significant reductions in your expected refund.

The IRS will send you a letter explaining the adjustment, but it usually takes about three weeks to arrive. If you got your refund already, check the IRS Where’s my refund? the site to see what they adjusted and how it impacted your refund. It may take several days for the site to be updated.

 

Also, review the link below for other reasons:

 

Refund Discrepancies

 

@tommyg2007 

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