Amended 2020 return for two changes (Unemployment + Capital Gains); but IRS adjusted only Unemployment

[RCK]

May be a timeline view might be better to explain my scenario.

• 2021 February/March: Filed returns, and we owed IRS and we paid the amount. This included Unemployment my wife received.
• 2021 April: Learnt that $10,200 of UI was exempted but did not amend since IRS will be auto adjusting it
• 2021 July: Realized we made a mistake in the Capital gain calculation and hence chose to amend the return. So amended the return which include both changes:
  
  1. Unemployment benefits of $10,200 excluded
  2. Updated the Capital Gain calculations
• 2021 August 23: Received a refund check for an amount considerably less than what we were expecting. Status of 1040X says 'Adjusted'. When we checked the IRS Account transcript, it is evident that only UI adjustment was done (Reduced AGI exactly by $10,200). Capital gain adjustment is NOT accounted.

Questions:

1. What does it all mean - does it mean that IRS 'auto' processed UI exemption and my actual 1040X is yet to be processed?
2. What should we do now - submit another Amended return or just wait since the 16 weeks SLA for 1040X is only up in October?

@NewYorkTaxpayer Thanks for sharing your experience! Is this roughly in line with your fiancé's experience? At least from the 1040X status perspective, it looks that way. Can you please comment? 

[Critter-3 · Accepted solution]

1. What does it all mean - does it mean that IRS 'auto' processed UI exemption and my actual 1040X is yet to be processed?   CORRECT 
2. What should we do now - submit another Amended return or just wait since the 16 weeks SLA for 1040X is only up in October?   WAIT ... amended returns are taking 4 to 6 months to process AFTER the IRS makes the change for the unemployment exclusion. 

[RCK]

Thank you for your reply!