If you owe money to a federal or state agency, the federal government may use part or all of your federal tax refund to repay the debt. This is called a tax refund offset.
LAST UPDATED: January 5, 2024
Ask a real person any government-related question for free. They will get you the answer or let you know where to find it.
FAQs
Refund less than expected
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 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.
Is it good if your tax refund is low? ›
Advice from financial experts backs up what may sound counterintuitive: Smaller is usually better. Instead of a joyous windfall from Uncle Sam, a tax refund, they say, represents an interest-free loan that you've given the federal government.
Why did I not get my full tax refund? ›
Sometimes, you'll receive a refund that's either more or less than you expected. Common reasons include changes to a tax return or a payment of past due federal or state debts.
Why is my 2024 refund so low? ›
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.
How to get a bigger tax refund? ›
Here are four simple ways to get a bigger tax refund according to the experts we spoke to.
- Contribute more to your retirement and health savings accounts.
- Choose the right deduction and filing strategy.
- Donate to charity.
- Be organized and thorough.
How do I contact the IRS about my refund? ›
Answer: If you lost your refund check, you should initiate a refund trace: Use Where's My Refund, call us at 800-829-1954 and use the automated system, or speak with an agent by calling 800-829-1040 (see telephone assistance for hours of operation).
Why did my refund go down when I added another W-2? ›
Your refund meter changes as your numbers change. When you enter a second W-2, you add more income. Generally, more income means more taxes.
What is the average tax return for a single person making $60,000? ›
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.
States with the largest/smallest average refunds for tax year 2021
Rank | State | Average refund |
---|
7 | Connecticut | $4,877 |
8 | Texas | $4,753 |
9 | California | $4,671 |
10 | Louisiana | $4,617 |
6 more rowsMar 11, 2024
Will refunds be bigger in 2024? ›
So far in 2024, the average federal income tax refund is $2,850, an increase of 3.5% from 2023. It's not entirely unexpected: To adjust for inflation, the IRS raised both the standard deduction and tax brackets by about 7%.
Does the IRS make mistakes on refunds? ›
When the amount of the refund (paper check or direct deposit) is different than what was expected, indicating the IRS changed the amount, a notice explaining the adjustment is mailed to your address of record. Please review the information in the notice to determine if the change to the refund is correct.
Is it normal for my tax return to be still processing? ›
If you're still waiting on your tax refund, it's possible that your tax return is taking longer for the IRS to process because it requires additional review. There are several reasons why your tax return may be delayed: Errors such as an incomplete filing status. Missing information.
How to talk to a real person at the IRS? ›
Use Where's My Refund, call us at 800-829-1954 (toll-free) and use the automated system, or speak with a representative by calling 800-829-1040 (see telephone assistance for hours of operation).
Why is my tax return so low filing jointly? ›
Double-check the amount of income you reported. Ensure that you've claimed all the deductions and credits you're entitled to. Make sure you (and your spouse if you're filing jointly) have both signed the return. Check your math.