I have a simple return. I'm single and only claim myself. In checking the status of my refund, I was informed that it took longer than expected because it had to be corrected. I'm now receiving quite a bit less than the system has me receiving. This is my first time using Turbo Tax. Is this how it usual goes? Thank you.
One thing the IRS has been changing is for the Recovery Rebate Credit on 1040 line 30. Do you have an amount on line 30? Did you already get the first or second stimulus checks? You had to enter what you already got or Turbo Tax gave it to you again.
I’ve seen posts where the IRS reduced the refund like if you claimed the second $600 but then got it after you filed.
MY REFUND WAS LESS THAN I EXPECTED
There can be a number of reasons why your refund was less than the amount you expected. First of all, look carefully at your actual tax returns. There is sometimes confusion about the amount of refund to expect when users misinterpret the “summary” they saw in TurboTax. The amount of your refund is on your tax return. Federal refund is on line 34 on Form 1040 State tax forms are all different so we cannot tell you what line to look at on your state form. BUT it is important to actually LOOK at your tax return forms yourself and see the amounts of your tax refunds and/or tax due. A lot of confusion would be avoided by doing that.
TurboTax does not receive feedback from the IRS regarding money that was offset from your refund. If you owed back taxes, child support, student loan debt, etc. you will receive a letter of explanation from the IRS in several weeks. The WMR site will contain a message regarding your offset. It is also possible that the IRS caught a mistake you made and reduced your refund.
A possible reason for the reduction could be that the recovery rebate credit was completed incorrectly and you may have entered the amount of stimulus already received wrong, which could have reduced the refund you thought you were seeing.
It is also possible that your state reduced your refund for debts owed in your state—if the state reduced your state refund you will receive a letter from the state.
https://www.irs.gov/uac/tax-refund-offsets-pay-unpaid-debts
IRS Treasury Offset Program Call Center at 1-800-304-3107
Be aware also that your Federal refund and state refund do NOT come together. Federal and state tax returns are processed by two completely separate entities. There is no rule as to which one will come first,
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)
How can I see my TurboTax fees?
https://ttlc.intuit.com/questions/2565973-how-do-i-review-my-fees-in-turbotax-online
https://www.irs.gov/uac/tax-refund-offsets-pay-unpaid-debts
https://ttlc.intuit.com/community/refunds/help/what-is-a-refund-offset/00/26301
Reduced Refund https://www.irs.gov/taxtopics/tc203
If the IRS changed the refund then they will sent a letter explaining the change in about 3 weeks after sending the refund. Could be many reasons.
One thing the IRS has been changing is for the Recovery Rebate Credit on 1040 line 30. Do you have an amount on line 30? Did you already get the first or second stimulus checks? You had to enter what you already got or Turbo Tax gave it to you again.
I’ve seen posts where the IRS reduced the refund like if you claimed the second $600 but then got it after you filed.
Thank you for your prompt and accurate response. I finally found the reason for the change and it does state, "We changed the amount claimed as Recovery Rebate Credit." Once again, thank you and all who offered a response to my inquiry.
I filed an extension to my 2020 tax return and submitted an estimated payment of $5,000. After filing electronically, I received a few months later a direct deposit refund but it was exactly $5,000 less than expected (line 38a____ of Form 1040-SR (2020). [ I know I shouldn't have sent so much $$ but wanted to be safe]. This was more than 5 months ago. I received no follow-on letter of explanation. How or to whom should I inquire at IRS to get my full refund? Thanks, Tom
In this public forum we cannot diagnose why your refund has been reduced. For additional information, please see this Help Article or this TurboTax blog. @TDC3Buns