In most cases, the IRS takes part of your refund to pay for outstanding government debts you might owe. These include: Overdue federal tax debts. Past-due child support.

What does it mean if we receive a refund on your taxes at the end of the year?

Taxpayers receive a refund at the end of the year when they have too much money withheld. If you’re self-employed, you get a tax refund when you overpay your estimated taxes. While you might consider this extra income to be free money, it’s actually more like a loan that you made to the IRS without charging interest.

Why is my refund different than expected?

Why is my refund different than the amount on the tax return I filed? All or part of your refund may have been used (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.

Why did I get half of my tax refund?

I do not know the exact reason that the IRS did not refund the amount that you were expecting to receive, but one common reason that could have resulted in your refund being lower than you expected, is that your refund was reduced by the government, either to correct a calculation error or through a refund offset .

How does the IRS adjust your tax refund?

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 Forms 1444 and 1444-B.

What does it mean when you get a refund offset?

A refund offset is when an IRS refund is reduced or intercepted to pay off delinquent debt, such as past-due child support, outstanding student loans, or unpaid state income tax. You will receive a notice in the mail if an offset occurs.

What to do if your tax refund is different than what you claimed?

Typically the IRS will mail you out a notice if your tax refund is different than the amount you claimed on your tax return. The notice will include information on the refund you were eligible for, the amount your tax refund was reduced by, what agency the money was sent to, and contact information for that agency.