Tax amount requested to refund exceeds the tax balance available for the order or item
This error occurs when the refund amount you are requesting for the tax component of an order exceeds the amount that can be refunded. Common reasons why your requested refund might be too high include the following:
For example, if a customer pays $2 for tax, you can refund up to $2 toward the tax component of the order. If you refund $1.50 of the tax, the customer's tax balance is $0.50. Any future refunds for tax cannot exceed that $0.50 balance.
To view the current balance for any component in an order, you can search for the order using the Search Orders feature in Seller Central.
To resolve this error, please resubmit your data with a refund amount that is less than or equal to the customer's current balance.