topic My federal return deposit is 600.00 less then what my return is supposed to be. in After you file

My federal return deposit is 600.00 less then what my return is supposed to be.

ashleyh71 — Mon, 15 Mar 2021 15:45:39 GMT

Does anyone know why this is? It's not in opening deposits either.

Re: My federal return deposit is 600.00 less then what my return is supposed to be.

DavidD66 — Mon, 15 Mar 2021 15:59:26 GMT

There are lots of reasons why the IRS adjusts refunds and sends taxpayers amounts different than what is on their return when they file. It could be that your refund was subject to an 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.

It could be because of a simple data entry error on your tax return that was corrected by the IRS. It could also be because you left something off of your return such as a Form 1099 or a W-2.

Whatever the reason, the IRS will send you a letter of explanation. You should receive the letter with a week or two.

Re: My federal return deposit is 600.00 less then what my return is supposed to be.

99elephants — Mon, 15 Mar 2021 22:21:56 GMT

all data was entered correctly, I owe no one any money, all taxes have been paid for years, last several years i got refunds, I have no child support, youngest is 30 years old and for some odd reason the amount they are deducting is exactly $600.00 not one penny more or less the same amount as the last stimulus check i received in early January. I received the text that my income tax was accepted on 2/12/21 and i still have not seen a dime of my return and I really want an answer. That is what i paid your company to be sure it was all correct and it is. Please advise thanks John Kuntzmann

Re: My federal return deposit is 600.00 less then what my return is supposed to be.

JamesG1 — Mon, 15 Mar 2021 22:52:45 GMT

It certainly sounds like a second stimulus of $600.

Are you saying that you received a second stimulus payment in January? Did you also claim a Recovery Rebate Credit (RRC) on line 30 of your 2020 1040 tax return?

If so, the IRS may have reduced your 2020 1040 tax return by the amount of the second stimulus check that you received in January.

At this time, we do not know what procedure the IRS will follow to notify taxpayers if they make such changes to 2020 tax returns whether the change is for this reason or some other reason such as a tax offset or an entry error.

The IRS says that it will issue 9 out of 10 refunds to taxpayers in less than 21 days. However, if:

You have e-filed your 2020 Federal tax return,
You are claiming a Recovery Rebate Credit (RRC) on line 30 of the 2020 1040 tax return, and
Your tax return has been accepted by the IRS.

We suspect that the IRS will scrutinize stimulus payments that were issued against the tax returns that claim the Recovery Rebate Credit. We do not know how much delay that the IRS will incur in such cases.

Implementation of the American Rescue Plan will further strain the resources of the IRS. IRS live phone assistance is extremely limited at this time. For stimulus payment questions, call 800-919-9835.

Follow the TurboTax COVID Tax Center and the IRS Economic Impact Payment Information Center for further developments.