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The taxpayer did not provide a social security number that is valid for employment purposes.The taxpayer entered the incorrect amount of third stimulus payment issued by the IRS or none at all.The taxpayer was claimed as a dependent on someone else’s 2021 tax return.Some common possible reasons why the Recovery Rebate Credit amount was corrected by the IRS are: If a correction is needed, this will cause a delay in processing the tax return and the IRS will send the taxpayer a letter or notice explaining any change. The IRS has announced that if there’s a mistake with the stimulus credit amount, the IRS will calculate the correct amount and make the correction and continue to process the tax return. So if the information regarding your stimulus checks doesn’t match IRS records, the IRS will automatically adjust your tax refund amount based on the actual stimulus payments they sent out and the information reported on Letter 6475. When processing your tax return, the IRS will cross-reference the information on your tax return with the information they have on file for you. Or it’s possible that you may have entered a different amount of stimulus than the IRS actually sent to you when preparing your taxes, and the IRS made the adjustments. This lowers the refund amount that was initially calculated for you when your tax return was filed. If you answered that you haven’t received the third stimulus checks, a recovery rebate credit is calculated increasing your refund, but if the IRS did issue it to you, the IRS will adjust your refund amount accordingly.

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When completing your tax return, TurboTax has proactive guidance regarding the Economic Impact Payments, also known as the stimulus checks, and will ask you if you received a full or partial payment and the amount you received. ĭid you claim a credit to recover missed or partial third stimulus checks?įor the 2021 tax year (the taxes you typically file in 2022 ), many Americans who did not receive the third stimulus payment, or the full amount they were otherwise eligible for, may be eligible to claim a Recovery Rebate Credit when they file their taxes. It is possible that your tax refund amount is less than you initially expected because of information regarding your stimulus payments and the Recovery Rebate Credit. IRS Adjusted the Recovery Rebate Credit Calculated on Your Return It is important that information from both letters is added together on your tax return to avoid an adjustment to your return and avoid delays. Note for married filers, both spouses should each receive their own IRS letter 6419. If you didn’t enter an amount or entered an amount different than what the IRS has on file for you for the advance Child Tax Credit payments, this could cause an adjustment to your refund amount and cause delays. The IRS sent Letter 6419 detailing the total amount of 2021 advance payments you received and the number of qualifying children used to calculate those advance payments. It is possible that your refund is less than initially expected if different information was entered for your advanced child tax credit payments than what was actually issued by the IRS. IRS Adjusted the Child Tax Credit on Your Return

For answers to this question and anything else related to your tax situation, TurboTax Live tax experts are available in English and Spanish, year round, and can even review, sign, and file your tax return. Also, here is information from the IRS on why your refund may have been adjusted. Read on for more details to help you understand why your refund may be different than expected, but know that you don’t need to remember all of this come tax time. Refer to the FAQs below and check Where’s My Refund? for details. Also, all or part of your refund may have been used (offset) to pay off past-due tax or debts. If your refund amount is different than you expected, it may be because we made changes to your tax return including corrections to any Recovery Rebate Credit or Child Tax Credit amounts. The IRS just updated their Tax Season Refund FAQs and explain:

An adjustment for Federal taxes owed for a previous year.

Your refund is offset as part of the Treasury Offset Program.

The IRS made adjustments due to differences in what is reported to them or adjustments to certain credits and deductions.

The IRS adjusted the child tax credit calculated on your return.

The IRS adjusted the recovery rebate credit calculated on your return.

There are a few reasons why refunds received from the IRS may be different than expected this tax season: But what if the amount the IRS deposited in your account is less than the refund you initially saw when you submitted your tax return? You may be wondering why your tax refund is less than you expected. You filed your taxes before the tax deadline and were fortunate enough to get a tax refund.

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