Skip to main content
March 23, 2021
Question

Has anyone received a federal tax return direct deposit amount that was less than the Turbo Tax accepted federal return amount with no notification or explanation?

  • March 23, 2021
  • 2 replies
  • 0 views
No text available

2 replies

March 23, 2021

It is not uncommon for the IRS to adjust tax refunds and send the filer less than the amount of the refund on the tax return.  It could be a Tax Offset.  If you owe money because of certain delinquent debts, the IRS or the Department of Treasury's Financial Management Service (FMS), which issues IRS tax refunds, can offset or reduce your federal tax refund or withhold the entire amount to satisfy the debt.

 

If you owe federal or state income taxes your refund will be offset to pay those taxes. If you had other debt such as child support or student loan debt that was submitted for offset, FMS will take as much of your refund as is needed to pay off the debt, and send it to the agency authorized to collect the debt. Any portion of your refund remaining after an offset will be refunded to you.

 

It could also be due to a data entry error, or something missing from your tax return (e.g. a 1099 you did not enter).  

 

Regardless of the reason, the IRS will send you a letter with an explanation.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"
VolvoGirl
Employee
March 23, 2021

A common adjustment is if you claimed the Recovery rebate credit on 1040 line 30 when you already got the Stimulus payment or got the second one after you filed or reported the wrong amounts.  Do you have an amount on line 30?