When the IRS processes an amended tax return, they verify all income, credits, and supporting documents. If anything does not match IRS records or eligibility rules, they may adjust the refund amount.
| Reason | Why It Happens |
|---|---|
| IRS disallowed a credit | Lack of dependency eligibility or documentation |
| Income mismatch from employer data | Higher taxable income discovered |
| Math corrections by the IRS | Calculation errors on the amendment |
| Erroneous filing status | Married filing jointly vs separately issues |
| Earned Income Credit adjustments | W-2 proof or residency requirements |
| Child Tax Credit adjustments | Age, SSN, or residency rules not met |
Sometimes the IRS:
Positive adjustments are also possible, especially if the original return was incorrect.
Almost all amended refund changes are reported using:
This notice will include:
You may:
Time restrictions apply, so always read the deadlines provided.
The IRS verifies all numbers in an amended return. Any differences found during review may increase or reduce the refund amount. An official notice will be mailed explaining the adjustment.
Act fast to protect the non-liable spouse’s portion of the refund For married couples filing…
E-file doesn’t mean fast — and taxpayers deserve the truth The IRS proudly announced that…
How to Adjust Your Withholding Now to Maximize the Impact of the New OBBB Deductions…
Understanding the IRS Wage and Withholding Review When the IRS issues a CP05 Notice, most…
Why Form 1040-X Is Still the Slowest Path to Getting Your Refund By 2026, tax…
How to Confirm That Your New Deductions Were Actually Applied With the rollout of the…