If the refund amount shown by the IRS is different from the amount on your tax return, don't panic. Several common situations can cause a change after your return is accepted.
Review the possibilities below to see what may have affected your refund.
Offset for a Past-Due Obligation
The IRS may reduce your refund to pay certain outstanding debts through a process called an offset.
Common reasons for an offset include:
- Past-due federal or state taxes
- Unpaid child support
- Certain federal agency debts
- State unemployment compensation debts
If an offset was applied, the refund amount displayed by the IRS may be lower than the amount shown in your account. Your tax return information will not automatically update to reflect the reduced refund.
For more information about offsets, see our article on refund offsets.
Filing Fees Deducted From Your Refund
If you chose to have your tax preparation fees deducted from your refund instead of paying by debit card or credit card when you filed, your refund will be reduced by the amount of those fees.
In this situation, the refund you receive will be less than the original refund amount shown on your tax return because the filing fees are taken out before the remaining funds are sent to you.
State Refund Amount Changed
- You are not aware of any past-due obligations,
- Your filing fees have already been paid, and
- You have not received an explanation from your state tax agency,
you should contact your state's Department of Revenue or taxing authority directly. They can explain any adjustments made to your refund and provide details specific to your return.
Most state tax agency websites include contact information and refund inquiry resources.
None of These Situations Apply
If none of the reasons above explain the change to your refund amount, check the IRS Where's My Refund? tool for the most current status information.
In many cases, the IRS will provide additional details through the refund tracking tool or by mailing a notice to the address listed on your tax return.
If you receive a letter or notice from the IRS, review our collection of notice and audit articles for guidance on understanding the information and determining any next steps.
What Should I Do Next?
- Compare the refund amount on your tax return to the amount shown by the IRS or your state.
- Determine whether an offset or filing fee deduction applies.
- Check your refund status online.
- Review any letters or notices you receive.
- Contact the IRS or your state tax agency if you need additional information about an adjustment.