How do I determine why my federal tax refund was $500.00 less than expected?

[Christj_Aleutian]

My federal tax refund was 500 dollars less than was calculated on my return. Why was my federal tax return adjusted to reduce my refund?

[xmasbaby0]

That sounds like a mix up with a stimulus check.

Did you enter  ALL of the stimulus money that you had already received correctly in the recovery rebate credit section when you prepared your 2020 return?  The IRS cross checks and if you did not enter all of the money you received, they recalculate your refund.

[Christj_Aleutian]

Yes, all of the stimulus money received was entered correctly in the recovery rebate credit section when TurboTax prepared my 2020 return. My return was checked and verified by TurboTax software prior to submitting my federal return. I have not received any notification from the IRS that my federal return was changed. TurboTax is a wonderful tool. But, it is not inexpensive. I would like a call from someone so I am not going round and round via e-mail messages. Thank you.

[JotikaT2]

The IRS will notify you for the reason of any changes made to your tax return and refund.  It may take a few weeks for this letter to arrive.

You can also check the link below for other situations that may have resulted in a change in your refund. Be sure to scroll down to the section titled Why is my refund different than the amount on the tax return I filed?

Tax season frequently asked questions

You can also have an expert review your return by using the written response option provided as you are in the Live version of the software.  This will allow an agent to review your actual return and see if they can determine why your refund may have been reduced by $500.  This is an option.  However, if the adjustment is related to something that may not be easily seen, it may not be easily identified as it could be related to other factors.  For example, the IRS could have a different amount reported to them in withholdings or earnings that were not reported on your tax return. 

If you choose to see if an expert can identify the issue, you can request a written response using the link below.

Written response via Offline Review

[NCperson]

if the adjustment was EXACTLY $500, sounds like the IRS thinks you received more stimulus money than you reported on the FIRST stimulus. 

how much did you receive on the first stimulus and how many qualified children do you have? what did you enter for the actual amount received for the first stimulus?