5 Steps To Take Now If Your Tax Refund Is Lower Than You Thought
Written by
John Csiszar
Edited by
Rebekah Evans
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There are three main reasons why your IRS tax refund may come in lower than expected: an IRS adjustment to your return, a refund offset for an unpaid debt or some type of deposit issue.
Is your tax refund is lower than expected? Here are the steps you can take right now to discover the reason and enact a solution.
Use the IRS Where’s My Refund Tool
If you haven’t received your refund yet, visit the official refund tracking site of the IRS. The Where’s My Refund page updates once daily, overnight and it can tell you both when your refund is expected to arrive and if the IRS changed your refund amount.
Watch Your Mail for IRS Notices
If the IRS adjusted your refund amount, it will send you a CP12 notice explaining the change. These letters are fairly common and are issued for everything from math errors to incorrect use of credits, rebates and other factors that can modify your tax return. If you feel the change is not justified, you can dispute it with the IRS.
Visit Your IRS Online Account
Many Americans aren’t even aware that they can check the status of their taxes via an online IRS account. Once on the site, you can get a copy of your official tax transcript to see exactly what changed on your return and when.
Research Potential Offsets
One of the most common reasons for a reduction in a tax refund is known as a tax offset. If you owe money to the government for certain debts, such as past-due child support or federal or state taxes, the IRS has the right to take that money out of your refund before you receive the balance.
Take Steps To Remedy an Error
If you’ve reviewed all the information and believe the IRS made an error, act quickly and gather all the documentation that supports your position. If you neglected to include something on your tax return, for example, you may need to file an amended return using Form 1040-X.
If you have a more serious issue, you can contact the IRS directly or reach out to the Taxpayer Advocate Service for personalized support. Try to avoid non-official sources that claim they can help you in exchange for a hefty fee. For additional information, check out the IRS Refunds Hub page, which also lists official refund hotline numbers.
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