TAX SEASON 2024
What happens if your tax refund is less than what you expected?
Usually tax refunds can be lower because of unpaid debt which your potential tax refund has been deducted from.
It is still a couple of weeks until the first taxpayers receive their tax refunds. However, people who are to have their tax refunds lowered should already know why.
Most of the time tax refunds are witheld because of outstandingdebts. The federal or state agency that the taxpayer owes their money to should already have been contacted with a letter. The official term for withholding money from a payment is “offset” or “administrative offset.
What to do if your tax refund is less than what you expected
If your payment was reduced because you owed an overdue debt to a federal or state agency, the Bureau of Fiscal Service can tell you whom to call about it. You need to call the TOP Interactive Voice Response system: 800-304-3107.
If you discover errors or omissions on your tax return that could result in a higher refund, you may consider filing an amended return Form 1040-X to correct the mistakes. However, be aware that there are deadlines for filing amended returns, so act promptly if you decide to pursue this option.
If you filed jointly then another option would be to use IRS Form 8379. Also known as the “Injured Spouse Allocation,” this form is used by individuals who file a joint tax return with their spouse but have had all or part of their refund withheld by the IRS to satisfy the past-due obligations of their spouse.
By filing Form 8379, the “injured spouse” can claim their portion of the refund that would have been due if they had filed separately.