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For what reasons can I receive less money for my US tax refund?

2022-05-02T18:00:48.733Z


The Government can use part of your refund to pay debts you have with federal or state agencies, among other cases. We explain it to you.


Why will it take time to receive your US tax refund?

2:28

(CNN Spanish) -- 

It is possible that, when you receive your tax refund, the figure is less than what you expected: the Government can use part or even all of the money that corresponds to you if you have debts with federal or state agencies, among other cases.

Here we explain them to you.

The Department of the Treasury has a Compensation Program that can take the funds from your refund to settle different types of debts that you have with the Government, whether federal or state.

This includes tax debts (federal back taxes or state income taxes) and non-tax debts (for example, unemployment compensation debts at the state level or student loans at the federal level).

The money from the reimbursement can also be used to pay the pension for minor children or ex-spouse if applicable and there are arrears.

If what you have are federal taxes in arrears, it is the Internal Revenue Service (IRS) who will directly make the compensation and send you a notification.

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In all other cases, the Bureau of the Fiscal Service (BFS), which depends on the Treasury, intervenes and will also send you a notification in which you will be able to see what was the original amount that corresponded to you for reimbursement, how much you discount and which agency will receive the payment, with contact details.

beyond the debts

Debt settlements are not the only cases in which the amount of the refund may be less than expected.

Another possibility is that the IRS has made an amendment to your tax return, including a correction to the refund.

If this is the case, you can find an explanation by checking out the Where's My Refund? app, which allows you to track your tax return from when it's received by the IRS until processing is complete, and lets you know if your refund is "approved" or "submitted".

  • When does the IRS start sending tax refunds in 2022?

Who can you contact if you think there is an error?

If you believe that the debt they are paying off does not apply or that the amount is inadequate, you should contact the agency where your money will be sent.

This information should be in the notification you receive, but if you don't have it, you can contact the Compensation Program at 1-800-304-3107 and request the agency's information.

The program has a service option in Spanish by pressing number 5 and then 2.

With the IRS, meanwhile, you should only reach out if the original amount of the refund that came to you in the notification does not match the amount indicated on the return and you still have questions about the change.

Alternatively, if you do not receive a notice, you should contact the BFS center at 800-304-3107.

If there is indeed an error, the authorities explain, later you will receive a check with the amount you need.

What you should do if you are not the debtor

It may be the case that you have filed a joint return and are not responsible for a debt of your spouse.

If this is the case, you can request the part of the refund that corresponds to you.

To do so, you must file Form 8379, either together with the original return, with an amended one, or once you were notified that the refund would be used to pay the debt.

You should keep in mind that the process can take several weeks, according to the IRS.

When does the IRS start sending refunds?

If you're reading this article and still haven't received your refund, you may be wondering when that will happen.

According to the IRS, most taxpayers who file an "accurate and smooth" tax return receive their refund within 21 days of e-filing.

However, the pandemic and budget constraints may delay refunds and other services to taxpayers this tax season.

The IRS may take longer than expected to process tax refunds also due to a backlog of unprocessed cases from last year.

Here, everything you need to know about the term to receive the refund.

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Source: cnnespanol

All news articles on 2022-05-02

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