Why has the irs changed my refund from 1609 to 509.00 ?

[xmasbaby0]

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.

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

 NOTE: You can contact the IRS Treasury Offset Program Call Center at 1-800-304-3107 to ask if they have an offset for you on file. TurboTax would not have that information.

https://turbotax.intuit.com/tax-tips/tax-payments/who-can-garnish-an-income-tax-refund/L7cPPzDyc

[oakharborwa]

Yes I entered the stimulus I use turbotax every year .turbotax says 1609 in return.  From Wa state.  It was 1100 dollars so I think it was the child tax credit.  The irs will send me a letter to tell me why exactly and 509 dollars tax return.   I don't know 🤷🏼‍♂️  .

Never have I got this little amount. 

[oakharborwa]

Turbotax scammed me !   For the first time and the last time !    

[xmasbaby0]

Exactly $1100 sounds like a mixup over the stimulus amount you might have received for a child you claimed as a dependent.  The first stimulus check in 2020 was $500 if you claimed a child as a dependent; the 2nd one that was sent in early 2021 was $600.   Some people got confused and did not enter the amounts they received for dependents and thought that the $1100 that was added to line 30 of their return was an additional amount in their refund.  Is that a possibility for your situation?

[oakharborwa]

How come turbotax doesn't take care of this?    I guess i just have to wait to see what the irs letter says when i receive it.   What else should i do ? 

Thanks . 

J.T.

[oakharborwa]

The letter says. Changes to your 2020 form 1040.  We believe there's a miscalculation on your 2020 form 1040 which affects the following area of your return: • recovery rebate credit 

We made changes to your return that correct this error. As a result you are due a refund of $ 509.00

If you don't agree with the changes

Call [phone number removed]

We'll assume you agree with the information in this notice if we don't hear from you

[NCperson]

@oakharborwa 

how much did you enter that you had actually received for each of the two stimulus payments?

what was on Line 30 of Form 1040.  

Sounds like the IRS thinks you received more stimulus than you entered.... and $1100 would be for a child ($500 the first time and $600 the 2nd time). 

[oakharborwa]

On turbotax line 30 is 1100.00

[VolvoGirl]

Did you enter the full Stimulus payments you got, including for the child?  As the prior answer said 1100 is the amount for a child for both rounds. 500+600.

[NCperson]

1) how much did you enter that you actually received for the 1st stimulus?

2) how much did you enter that you actually received for the 2nd stimulus?

3) how many children under the age of 17 (as of 12.31.20) do you have that are listed on your tax return? 

it appears the IRS thinks you have 1 less qualified child than you think you have!!!!

[oakharborwa]

Line 27 28 29 are blank.

Line 30 is 1100.

I have one child 16yr.

Should i call the irs tomorrow am?

[oakharborwa]

Where can i find that at. ? 

Just One child 

Line 27 28 29 are blank. Line 30 is 1100

[NCperson]

there should be a Recovery Rebate CR worksheet.   On Line 16 (1st stimulus) and Line 19 (2nd stimulus) is what you entered for your payments.

Please post back what you entered.   

[oakharborwa]

Line 16  is  5415

Line 19 is 2000