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?

[ToshaM]

My refund was reduced from 4729 to 1929 and I'm not sure why. I need to find out why. I know the refund was taken by child support.  But I want to know why the irs changed the amount. Is it because of my dependent?

[DoninGA]

@ToshaM 

If your refund is short $2,800 then that is because you said you did not receive the 3rd stimulus payment and the IRS has records that show you were sent the 3rd stimulus payment so they removed the $2,800 Recovery Rebate Credit that was entered on Form 1040 Line 30.

Go to this IRS website for your tax account to see if the 3rd stimulus payment is entered - https://www.irs.gov/payments/your-online-account
If you are Married Filing Jointly also check your spouse's tax account.

If you checked your bank account in the March - May 2021 timeframe and there is not a $2,800 EIP3 payment from the IRS then go to this IRS website for how to start a trace on the payment - https://www.irs.gov/newsroom/questions-and-answers-about-the-third-economic-impact-payment-topic-j-p...

[jgk116]

so now what, my federal retun was reduced and deposited into my checking account.  reduced by > 50%. no letter from the IRS, their "help" website indicates that the IRS needs additonal information and this will be sent in a letter.  I live in Chicago where the reliability of the postal service is approximatley 75% so it is likely I will NEVER get a letter.  how do I find out:

1. Why was my turbotax prepared refud amount reduced.

2. what information does the IRS need so I can get the remaoinder.

3. how do I not rely on the USPS for communication for this information. 

[jgk116]

Letter? snail mail?  in areas of the country where mail reliabiloity is no more than 75%? in Chicago, mail carriers are regulary cuaght, but never terminated, for throwing mail in a dumpster and taking the afterooon off.  that is where my IRS letter probably is. WHAT DO YOU DO WHEN NO LETTER SHOWS UP (my case) and now I have no way of finding out why my retrun was reduced? 

[jgk116]

NO letter recived and frustrating becuase I have no child support obligations and never recived any Covid aid.   this is not unusual, my mail is at best 75% reliable in Chicago.  how can I request another letter?  or send two more, maybe one will actually show up in my mailbox?

[xmasbaby0]

It might help you to check your online account with the IRS.   You will be able to see if the IRS says they sent you a stimulus check that you think you did not receive, among other things.

TurboTax does not get any information from the IRS after you file your tax return, so no one at TT knows why your refund was less.

You have not mentioned any specific amounts.  Sometimes we can make an educated guess as to the reason for your reduced refund if you mention specific amounts--for example if your refund was short by $1400---it is likely to be a mix up regarding the 3rd EIP payment.   If it is short by $1800 or  $1500 or  a multiple of that amount  ---   maybe a mixup regarding the advance child tax credit payments.   Or---the fees you were supposed to pay for using TurboTax + the "refund processing fee" charged by the third party bank….

Did you choose to have TT fees deducted from your Federal refund?  (Remember that if you did that, you also agreed to an extra refund processing fee of $39.99 or $44.99 in CA)

How can I see my TurboTax  fees?   

https://ttlc.intuit.com/questions/2565973-how-do-i-review-my-fees-in-turbotax-online

What is Refund Processing Service?

The IRS will send you a letter that explains why your refund was reduced.   Meanwhile it might help you to check your online IRS account.

https://www.irs.gov/payments/your-online-account

https://blog.turbotax.intuit.com/tax-refunds/why-is-my-tax-refund-not-what-i-expected-49240/

[jgk116]

My refund was reduced by exactly $1941.25.  I have 0 child support obligations. I was NOT eligible nor did I recieve any Covid releif or stimulus.  I have no idea why my federal return was reduced. On the "wheres my refund" link the only thing it states is the IRS would be sending me a letter requesting more information.  No letter and low confidence there will be a letter given the trajedy or abhorrent USPS service where I live (and pay taxes) what other means are there:  email, live chat, phone(!!),  smoke signals for me to find out why the IRS reduced my return and what I need to provide to get this cleared up?

[xmasbaby0]

@jgk116 We cannot fix the unreliable mail service you cite.  You cannot email or live chat with the IRS.    You can try calling the IRS.   It is quite difficult to get through to the IRS---we hear anecdotally that calling a 7 a.m. might work better.

To call the IRS:IRS:  800-829-1040  hours 7 AM - 7 PM local time Mon-Fri

Listen to each menu before making the selection.

First choose your language. Press 1 for English.

Then do NOT choose the first choice re: "Refund", or it will send you to an automated phone line.

Instead, press 2 for "personal income tax".

Then press 1 for "form, tax history, or payment".  

Then press 3 "for all other questions."

Then press 2 "for all other questions."  It should then transfer you to an agent.

[jgk116]

Thank you for your specific help on how to ask for getting input on what is needed by the IRS.  This reduction is is odd because I 1).  am empty nester, no child tax credit   2.) no child support 3.)  no Covid relief/stimulus. 4.) Return was done on Turbotax with imported data so unlikely a math error. 

as for the USPS:  I realize you cannot help, that is just me making an editorial comment and wondering why the IRS relies excusively on what is becoming more like a third world manual system ...that they run...ok...maybe that is why 🙂

[xmasbaby0]

@jgk116 I am now curious as to why you did not receive the stimulus checks.]  You say you did not get them.   Were you ineligible for some reason?   You would only be ineligible if either you are claimed as someone else's dependent or if your income was too high to receive the stimulus money.   The IRS sent out three stimulus checks---did you not receive any of those?   

The first EIP --or stimulus check--- was issued in 2020  It was for $1200 for adults and $500 for a dependent under the age of 17.   The IRS used information from either your 2019 or 2020 tax return to issue those checks so they could send them out in a hurry.

The 2nd EIP or stimulus was issued in late 2020 or early 2021 and was $600 for adults and $600 for dependents under age 17.

If you did not receive the 1st and/or 2nd stimulus check you can get it by filing a 2020 tax return and using the recovery rebate credit in Federal Review.   It will end up on line 30 of a 2020 tax return and will be added to your refund (or reduce your tax due).

The 3rd EIP--or stimulus check-- was sent out in mid-March or later in 2021 and was for $1400 per person--adults and dependents no age limit.

If you did not get the 3rd EIP payment you can get it by filing a 2021 tax return and using the recovery rebate credit in Federal Review.   The credit will go on line 30 of your Form 1040 and will add to your refund (or reduce your tax due).

https://ttlc.intuit.com/community/dependents/help/what-are-the-eligibility-rules-for-the-recovery-re...

[jgk116]

Hello...thank you for the reply. I did not get nor was I eligible for the covid relief or stimulus.  I also have no unpaid taxes or child support obligations. 

What other reasons would the IRS have for arbitrarily reducing my return v what was file for?

Thanks again for your help.

[xmasbaby0]

@jgk116 TurboTax gets no information from the IRS after you file your return.  We can only offer our best guesses in this forum and you say none of the most common possible reasons apply to you.  So we do not know, and your only information is going to come from the IRS---when you finally get the letter or reach someone at the IRS to explain.

[SweetieJean]

The IRS might have reduced your refund for data entry errors and/or forgotten income.

[Wachter33]

I had got a letter in the mail that my tax return Reduce and I have no clue why But he said I should receive more money in 4 to 8 weeks it’s been over there I still haven’t heard anything or received anything about it