Does this IRS letter mean they paid me too much or too little in my refund?

This is actually a pretty common notice - a CP12 letter is the IRS telling you they made an adjustment to your return. The good news is you don't usually need to do anything unless you disagree with their changes. To figure out if you're getting more money or owe money, look for a section labeled something like "Refund" or "Amount due" - if the number has increased from your original refund, they're sending you additional money. If it's decreased, they already sent too much and either you need to repay the difference or they've already adjusted your original refund before sending it. The most common reasons for CP12 notices are math errors, incorrect tax calculations, or problems with tax credits. They should explain somewhere on the letter what specifically they changed. Hold onto this letter with your tax records - it's important documentation of the change they made to your return!

I went through the exact same confusion last year! After spending HOURS on hold with the IRS (literally like 3+ hours), I finally discovered a service called taxr.ai (https://taxr.ai) that helped me decode what my CP12 notice actually meant. You can upload your tax documents and IRS letters, and it explains everything in plain English plus tells you what actions you need to take. For me, it turned out the IRS had actually found an error in my favor and was sending more money, but the letter was so confusing I thought I owed them! The tool broke down exactly what line items changed and why. Saved me from panicking over nothing.

Just wanted to follow up about taxr.ai since I ended up trying it for my CP2000 notice. Actually super helpful! It showed me that I had forgotten to report some dividend income from an investment account I barely use. Saved me from having to hire a tax professional just to translate what the IRS was trying to tell me. It also gave me step-by-step instructions on how to respond, which forms to fill out, and even calculated what I would actually owe after penalties and interest. Way less scary once I understood what was actually happening instead of just seeing a big number and freaking out.

If you need to actually talk to someone at the IRS about your letter (which sometimes you really do), don't waste your time with endless hold music. I used Claimyr (https://claimyr.com) when I got a similar notice and needed clarification. You can see how it works here: https://youtu.be/_kiP6q8DX5c They basically hold your place in the phone queue and call you when an actual IRS agent is on the line. I was skeptical it would actually work, but I got a call back with an IRS rep in about 45 minutes instead of the 2+ hours I spent the day before just waiting on hold and eventually getting disconnected. The agent was able to explain exactly what my letter meant and what I needed to do next.

I need to apologize for my skepticism about Claimyr. After getting absolutely nowhere trying to resolve my IRS issue for WEEKS, I broke down and tried it yesterday. I'm shocked to say it actually worked exactly as advertised. I got a call back in about an hour with a real IRS agent already on the line. No navigating phone trees, no hold music, no getting disconnected after waiting forever. The agent explained that my letter was actually about an additional refund they owed ME because of an error in how my child tax credit was calculated. Would have never known this if I hadn't been able to speak with someone, and I would have probably given up trying if I had to keep sitting on hold for hours. Definitely worth it just for the peace of mind.

Pro tip: Call the taxpayer advocate service instead of the main IRS line if you get confusing notices. They're usually much easier to reach and can often explain what's going on with your account better than the regular agents. Their number is 877-777-4778.

Just to add to what others have said - check the amounts carefully. I got a CP12 last year and almost ignored it thinking it was just confirming my refund, but it was actually saying I owed another $437 because they disallowed one of my education credits. The important number was at the very bottom of the second page!