Why's my refund lower than the amount shown in TurboTax?
There are a few reasons why the refund check or direct deposit you received might be less than what was shown in TurboTax.
1. The IRS found an error in your return.
After you file your tax return, the IRS looks at the info you gave and compares it to their database. If they find any differences, they may make changes that lead to a smaller refund. This commonly happens with the advance Child Tax Credit.
The IRS will send you a letter explaining the adjustment, but it usually takes about three weeks to arrive. Check the IRS Where’s my refund? site to see what they adjusted and your new refund amount.
• The Reason: A specific explanation of the error found (e.g., a math error, a miscalculated credit like the Child Tax Credit, or a discrepancy with your W-2/1099 data).
• The Comparison: A side-by-side breakdown of your original figures versus the IRS’s corrected figures.
• Instructions: Details on what to do if you agree or disagree with their assessment.
• Contact Info: A phone number and address for the specific IRS department that handled the change.
• Call them: The fastest way to resolve simple errors is by calling the number on the top right of the notice.
• Write to them: If the error is complex, mail a letter to the address provided, including any supporting documents (like a missing W-2) that prove your original return was correct.
TurboTax doesn’t have visibility into why an individual filer’s return has been adjusted.
2. You paid your TurboTax fees with your refund.
When filing with TurboTax, you have the option to pay for your fees with your federal or state (if applicable) refund. If you choose this option, there is an additional refund processing service fee which will also be deducted from your refund.
3. The IRS offset your refund.
A refund offset is when the IRS applies your refund toward past-due income tax, child or spousal support, student loans, or state unemployment compensation debts. You’ll get a letter from the Bureau of the Fiscal Service (BFS) rather than the IRS, explaining why you didn't get your entire refund. You can also check Where's My Refund? or the Bureau of the Fiscal Service site for more information.
