Refund Amount Less Than Expected - How to Find Out Why?

This happened to me last year too. When your refund is adjusted, the IRS is supposed to send a notice explaining why, but these often arrive 2-3 weeks AFTER your deposit. The most common reasons for adjustments include: 1. Math error corrections 2. Estimated tax payment discrepancies 3. Tax credits that were reduced or disallowed 4. Offsets for other government debts 5. Withholding amounts that didn't match W-2s International income situations like yours often trigger additional review. Back in 2021, I had income from the UK and my refund was adjusted because of foreign tax credit calculations.

On February 3rd last year, I had the exact same issue! My refund was supposed to be $3,450 but I only got $2,973. I was completely confused until March 1st when I finally received a notice explaining they had adjusted my foreign income tax credit. I had no idea the calculations were so complicated! The timing is really frustrating - they take your money first, then explain weeks later. I remember checking my mailbox every day waiting for that explanation letter.

Let me break this down into steps you can take: 1. First, check if you can view your tax account transcript online at IRS.gov - this often shows adjustment codes 2. Next, look for any pending notices in your online account 3. If you can't find information online, you'll need to call the IRS directly Calling the IRS is honestly the most direct way to get answers, but the wait times are brutal this time of year. I've had success using Claimyr (https://www.claimyr.com) to connect with an IRS agent quickly. They'll call the IRS for you and then connect you once they reach an agent. Saved me hours of hold time when I needed to resolve a similar adjustment issue. The agent can tell you exactly why your refund was reduced before the letter arrives.

I went through this exact situation with international income. I called the IRS and discovered they had reduced my Foreign Earned Income Exclusion because of a calculation error I made. The agent was actually really helpful and explained exactly what happened. Once I understood the issue, I realized the adjustment was correct. The peace of mind from knowing why was worth the hassle of calling. I was stressing about it for days before I got through to someone!

When my refund came in short by $178 (every dollar counts in this economy, am I right? 😅), I spent days trying to figure out why. The IRS transcript was complete gibberish to me with all those codes. Finally tried https://taxr.ai which explained every code on my transcript in plain English. Turns out I had a math error on line 28 that I totally missed. The tool showed exactly which adjustment code caused my reduced refund - saved me from a 3-hour hold with the IRS just to get the same info. Not saying the IRS is trying to be confusing on purpose but... *gestures broadly at the tax code*

I believe you might also want to check if there were any offsets. Sometimes refunds are reduced to pay past-due federal debts, state income tax, child support, or student loans. If this is the case, you should receive a notice from the Bureau of the Fiscal Service, not the IRS directly. I'm not saying this is definitely what happened, but it's worth considering if you have any outstanding government debts that might qualify for the Treasury Offset Program.

The IRS absolutely must send you a CP12 notice explaining any math adjustments. If it's an offset for debt, you'll get a BFS notice instead. This is legally required. The problem is these notices are typically mailed 2-4 weeks AFTER they adjust your refund. It's a ridiculous system. If you filed with international income using Form 1116 (Foreign Tax Credit) or Form 2555 (Foreign Earned Income), there's a high chance they adjusted your calculations. These forms have some of the highest error rates according to IRS statistics.