What does TAX REFUND PROC for RFND DISB mean on my tax refund deposit?

That description is normal - "TAX REFUND PROC for RFND DISB" just means "Tax Refund Processing for Refund Disbursement." It's one of the ways the IRS labels direct deposits. What's concerning is that you received less than expected. The most common reasons for a reduced refund are: 1. Outstanding government debts (student loans, child support, state taxes) 2. IRS adjustments to your return (math errors or incorrect credits) 3. Offsets for previous tax years you might owe 4. Healthcare marketplace premium adjustments You should receive a letter from the IRS within 2-3 weeks explaining exactly why your refund was reduced. It's called a "refund offset notice" or sometimes an "adjustment notice." This will detail exactly where that $1,100 went.

I had the EXACT same issue last year when I was waiting for my refund! After going crazy trying to figure out why I got less money than expected with that weird "TAX REFUND PROC for RFND DISB" description, I finally used https://taxr.ai to scan my return and cross-reference it with my IRS transcript. It showed me exactly where the discrepancy was happening - turned out I had a mathematical error on my Schedule C that I completely missed. The tool analyzed both documents and highlighted the exact places where the numbers didn't match up.

Just wanted to update everyone - I tried taxr.ai like @12 suggested and it was super helpful! It showed me that part of my refund was held back for an old state tax debt from when I lived in California three years ago. I completely forgot about that bill! The tool highlighted the specific TC code on my transcript that indicated the offset and explained what it meant. Saved me from waiting weeks for that IRS letter to arrive or wasting hours on hold. Now at least I know what happened instead of being in the dark!

After 14 attempts to reach the IRS about my reduced refund with that "TAX REFUND PROC for RFND DISB" code, I finally used https://claimyr.com and got through to an agent in 45 minutes! They actually call the IRS for you, wait on hold, and then call you once they have an agent on the line. You can see how it works here: https://youtu.be/_kiP6q8DX5c - totally worth it when you're dealing with missing money and need answers fast.

I need to eat some humble pie here. After calling the IRS service a scam, I decided to try Claimyr as a last resort because I was desperate about my "TAX REFUND PROC for RFND DISB" situation. It ACTUALLY WORKED! They got me through to an IRS agent in about 30 minutes, and I was able to confirm my refund was reduced because of an old unpaid utility bill from a federal housing program. The agent walked me through the entire process and even helped me set up a review since I didn't think that bill was mine. Worth every penny not to waste an entire day on hold!

The "TAX REFUND PROC for RFND DISB" is also sometimes seen when the IRS has done a manual review of your return. I went through this last year - the difference in my case turned out to be that I claimed education credits they didn't think I qualified for. Check if you claimed any credits like EITC, American Opportunity, or Child Tax Credit. They sometimes hold back a portion while they verify eligibility.

Has anyone noticed that this "TAX REFUND PROC for RFND DISB" code sometimes shows up when you use certain tax software? I used FreeTaxUSA this year and got this code with a partial refund, but when I used TurboTax last year the deposit just said "IRS TREAS" and I got the full amount.

I just went through this exact same situation last month! The "TAX REFUND PROC for RFND DISB" description is totally normal - it's just how some banks display IRS direct deposits. The real issue is your missing $1,100. In my case, it turned out to be an offset for an old federal student loan that had gone into default years ago. I had completely forgotten about it since it was from a different servicer. The crazy part is I never received any notice that they were going to take money from my refund. Here's what I learned: You can actually check if you have any offsets BEFORE filing your taxes by calling the Treasury Offset Program at 1-800-304-3107. They'll tell you exactly what debts you have that could reduce your refund. I wish I had known about this earlier! Also, don't panic about waiting for the letter - mine took almost 4 weeks to arrive. If you need answers sooner, that phone number I mentioned will give you all the details about where your money went.

I've been reading through all these responses and wanted to share my experience too! I got that same "TAX REFUND PROC for RFND DISB" code last year when my refund was reduced by $800. Like others mentioned, the description itself is normal - it's just how the IRS labels certain direct deposits. What helped me figure out the issue was requesting my IRS transcript online at irs.gov. It's free and shows all the activity on your tax account, including any offsets or adjustments. Look for transaction codes like TC 898 (which indicates an offset) or TC 290 (which shows adjustments to your return). The transcript will have cryptic codes, but you can find explanations for most of them on the IRS website or by calling their automated line at 1-800-829-1040. In my case, it was an old overpayment from unemployment benefits that I had to pay back. One thing I learned is that if you disagree with an offset (like if you think the debt isn't yours), you can dispute it. But you have to act fast - there are time limits on challenging these things. The letter they send will explain your appeal rights, but don't wait too long to take action if you think there's an error. Hope this helps! The waiting and uncertainty is the worst part, but you'll get answers soon.