Hi! My refund was reduced by the IRS and I have no clue why.. I don't have any outstanding debts or children to have child support. How do I find out why it was reduced?

[DoninGA · Accepted solution]

The IRS will contact you by mail to explain why they changed your tax return which reduced the tax refund.

Go to this IRS website for federal tax refund FAQ's - https://www.irs.gov/refunds/tax-season-refund-frequently-asked-questions

Why is my refund different than the amount on the tax return I filed?
All or part of your refund may have been used (offset) to pay off past-due federal tax, state income tax, state unemployment compensation debts, child support, spousal support, or other federal nontax debts, such as student loans. To find out if you may have an offset or if you have questions about an offset, contact the agency to which you owe the debt.

We also may have changed your refund amount because we made changes to your tax return. You’ll get a notice explaining the changes.   Where’s My Refund?  will reflect the reasons for the refund offset when it relates to a change in your tax return.

Tax Topic 203 - Refund Offsets for Unpaid Child Support, Certain Federal and State Debts, and U...  has more information about refund offsets.

[mitchelldohm]

Thanks for the response! Is there any way to dispute it? Does Turbo Tax offer any support?

[DoninGA]

If you disagree with the IRS you can dispute their findings.  

If you purchased the Max Benefits option which includes Audit Defense then they can contact the IRS on your behalf based on the IRS notice you receive.

If you did not purchase Audit Defense then you can use the TurboTax Audit Support Center which can be used to review your tax return and the IRS letter you received.  They can advise you on what your next steps should be but they cannot contact the IRS on your behalf.
TurboTax Audit Support Center - <a rel="nofollow" target="_blank" href="https://support.turbotax.intuit.com/irs-notice/audit-support/">https://support.turbotax.intuit.com/i...>

[EDSLAB]

CAN YOU TELL ME WHY RETURN ON TURBO TAX READ 3226 AND IRS SENT ME LESS THANKS ED SLABINSKI

[DoninGA]

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@EDSLAB wrote:

CAN YOU TELL ME WHY RETURN ON TURBO TAX READ 3226 AND IRS SENT ME LESS THANKS ED SLABINSKI

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Once a tax return has been Accepted by the IRS or a State, TurboTax receives no further information concerning the tax return or the status of any tax refund. 

Go to this IRS website for federal tax refund FAQ's - https://www.irs.gov/refunds/tax-season-refund-frequently-asked-questions

Why is my refund different than the amount on the tax return I filed? (updated 2/5/2021)

All or part of your refund, including any amount for the Recovery Rebate Credit, may have been used (offset) to pay off past-due federal tax, state income tax, state unemployment compensation debts, child support, spousal support, or other federal nontax debts, such as student loans. To find out if you may have an offset or if you have questions about an offset, contact the agency to which you owe the debt.

We also may have changed your refund amount because we made changes to your tax return. This may include corrections to any incorrect Recovery Rebate Credit amount. You’ll get a notice explaining the changes. Where’s My Refund? will reflect the reasons for the refund offset when it relates to a change in your tax return.

Tax Topic 203, Refund Offsets for Unpaid Child Support, Certain Federal and State Debts, and Unemplo... has more information about refund offsets.

[Latiab19]

My state refund was reduced and I would like to know why ?

[DaveF1006]

You will need to contact your State Dept of Revenue to find out why your State refund was reduced.

[yoshi201]

All off sets are suspend until July 2022..

Turbo tax is doing something wrong...

I would start working on a fix now.

https://www.tateesq.com/learn/tax-refund-offset-reversal

[DoninGA]

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@yoshi201 wrote:

All off sets are suspend until July 2022..

Turbo tax is doing something wrong...

I would start working on a fix now.

https://www.tateesq.com/learn/tax-refund-offset-reversal

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TurboTax has nothing to do with offsets on a federal tax return.  Offsets are done by the IRS.

The IRS will hold off on offsets for student loan debt until May 1, 2022.  All other debts will be offset by the IRS.

[DanteTOR]

I have not received an email from the IRS on why some of my Federal return was taken.

[DoninGA]

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@DanteTOR wrote:

I have not received an email from the IRS on why some of my Federal return was taken.

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The IRS does not send emails to taxpayers.

The IRS will be sending a letter in the mail to the address on the tax return explaining the changes they made to the tax return which changed the federal tax refund.  The IRS may take several weeks before sending the letter.

[miguelapodaca]

Federal income tax reduced why

[DoninGA]

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@miguelapodaca wrote:

Federal income tax reduced why

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The IRS will be sending you a letter in the mail explaining what they changed on your tax return to reduce the federal tax refund.

Once a tax return has been Accepted by the IRS or a State, TurboTax receives no further information concerning the tax return or the status of any tax refund.

[ErnieS0]

The most common reasons for an adjustment of your refund are because taxpayers reported the wrong amount of stimulus or advanced child tax credit payments. 

The IRS will send you a letter explaining the change.