Why is my refund less than expected TurboTax? (2024)

Why is my refund less than expected TurboTax?

When you pay your TurboTax fees with your federal refund, the TurboTax fee plus a separate Refund Processing Service (RPS) fee are deducted from your total refund amount. So your IRS-issued tax refund might be less than the amount shown in TurboTax.

Why is my refund less than what TurboTax said?

This is called a tax refund offset. If your tax refund is lower than you calculated, it may be due to a tax refund offset for an unpaid debt such as child support.

Why would my tax refund be less than what I expected?

All or part of your refund may be offset to pay off past-due federal tax, state income tax, state unemployment compensation debts, child support, spousal support, or other federal nontax debts, such as student loans.

How accurate is TurboTax estimated refund?

100% Accurate Calculations Guarantee – Individual Returns: If you pay an IRS or state penalty or interest because of a TurboTax calculation error, we'll pay you the penalty and interest.

How do I find out why my tax refund was reduced?

Offset letter

BFS will send you a letter explaining why your federal refund was reduced and that it may take several weeks before the federal refund reaches FTB. They will also send any remaining federal refund amount to you. To get a copy of your letter, contact us.

Why is my federal refund so low 2024?

You may be in line for a smaller tax refund this year if your income rose in 2023. Earning a lot of interest in a bank account could also lead to a smaller refund. A smaller refund isn't necessarily terrible, since it means you got paid sooner rather than loaning the IRS money for no good reason.

What if my tax refund was the wrong amount?

Since the letter and check or direct deposit usually don't arrive simultaneously, you can always call the IRS if you get a refund check and have questions about the amount. The main IRS toll-free number is (800) 829-1040 or (800) 829-4059 (TDD) for the hearing impaired.

Does TurboTax get you less money?

No tax software provider can guarantee you the best refund. Your tax refund is based on your income, deductions, credits, and the amount of tax you paid in for the year. If you input your return information accurately, you should receive the same refund no matter which software you use.

What is the average tax refund for a single person?

The average tax refund by year

According to the IRS filing-season statistics, the average tax refunds in the last five years have been: Tax year 2022—$2,753. Tax year 2021—$3,012. Tax year 2020—$2,865.

What's the difference between still processing and being processed?

If their refund status changes from “being processed” status to “still being processed” status, the issue detected in the tax forms was likely resolved and the refund may be released when it is approved for a future cycle date.

What happens if TurboTax is wrong?

100% Accurate, Expert-Approved Guarantee

If you pay an IRS or state penalty (or interest) because of an error that a TurboTax tax expert or CPA made while providing topic-specific tax advice, a section review, or acting as a signed preparer for your return, we'll pay you the penalty and interest.

Is TurboTax always correct?

No matter which TurboTax version you choose, rest assured—you'll be asked simple questions and will have guidance finding every tax deduction and credit you deserve, and we guarantee 100% accurate calculations and your maximum refund.

Does TurboTax catch mistakes?

Remember, when you use TurboTax to prepare your taxes, we handle all of the calculations and enter them into the proper forms for you. We also double-check your returns for errors before you file.

Why did my refund go down when I added another w2?

When you enter a second W-2, you add more income. Generally, more income means more taxes. Your new total income might be in a higher tax bracket. Your second W-2 could have pushed your total income into a higher tax bracket, making it taxed at a higher marginal rate.

How can I get a bigger tax refund?

Will an offset delay my refund?

You'll get an explanatory letter from the Bureau of the Fiscal Service if your refund is offset. The remainder of your refund will be processed as usual. An offset shouldn't delay it, unless your entire refund was applied to your debt.

What is the average tax return for a single person making $60000?

If you make $60,000 a year living in the region of California, USA, you will be taxed $13,653. That means that your net pay will be $46,347 per year, or $3,862 per month.

Will my 2024 tax refund be lower?

So far in 2024, the average federal income tax refund is $3,145 — an increase of just under 6% from 2023. There's still more than a month before Tax Day but there's good reason to think 2024 refunds will be larger overall: To adjust for inflation, the IRS raised both the standard deduction and tax brackets about 7%.

Has anyone received their 2024 tax refund?

How many refunds have been given in 2024? The IRS received more than 54 million tax returns during the first five weeks of this tax season, which began Jan. 29, which is down 1.7% from a year ago. So far, 36,288,000 refunds have been given in 2024, compared to 42,040,000 in the same time frame in 2023.

Does the IRS make mistakes on tax refunds?

Yes. While not very common, The IRS does make mistakes.

It catches enough errors or supposed errors itself that it sent out 1.6 million notices related to math errors a few years ago. Even though the Service focuses on catching these mistakes, it also can make them.

Can IRS send refund by mistake?

The recipient of an erroneous refund has a legal obligation to repay the amount to the IRS. Legally, the IRS must follow specific guidelines to recover and collect erroneous refunds.

Is it better to claim 1 or 0 on your taxes?

By placing a “0” on line 5, you are indicating that you want the most amount of tax taken out of your pay each pay period. If you wish to claim 1 for yourself instead, then less tax is taken out of your pay each pay period.

What is the downside of TurboTax?

Another drawback previously mentioned is the price. TurboTax is the most expensive online tax filing software , especially for freelancers and rental property owners. But it can also become pricey for individuals who need to file multiple state tax returns. (TurboTax charges $64 to file state taxes, per return.)

How do I get a bigger refund on TurboTax?

Specifying more income on your W-4 will mean smaller paychecks, since more tax will be withheld. This increases your chances of over-withholding, which can lead to a bigger tax refund. That's why it's called a “refund:” you are just getting money back that you overpaid to the IRS during the year.

How do I get the biggest tax return for a single person?