Direct Deposit

[JW4141]

My checking account shows a deposit this morning from the IRS. I received my refund months ago. What could this be?

[xmasbaby0 · Accepted solution]

Did you receive unemployment in 2020?   Did you file your tax return before the law changed to waive federal tax on the first $10,200 of your unemployment?  If so:

The IRS began to send out the additional refund checks for tax withheld from unemployment in May.   If you are eligible for the extra refund for federal tax that was withheld from your unemployment the IRS will be sending you an additional refund sometime during the next several months.  TurboTax cannot track or predict when it will be sent.  The IRS has not provided a way for you to track it, so all you can do is wait for the refund to arrive.

https://ttlc.intuit.com/community/tax-topics/help/how-do-i-get-the-new-unemployment-benefits-if-i-ve...

Please read this very recent news from the IRS:

https://www.irs.gov/newsroom/irs-to-recalculate-taxes-on-unemployment-benefits-refunds-to-start-in-m...

https://www.irs.gov/newsroom/irs-begins-correcting-tax-returns-for-unemployment-compensation-income-...

https://ttlc.intuit.com/community/tax-credits-and-deductions/help/am-i-eligible-for-a-new-credit-or-...

https://www.irs.gov/newsroom/2020-unemployment-compensation-exclusion-faqs

[DoninGA · Accepted solution]

On the bank account what is the Payee's exact name?

If you reported unemployment on your tax return, this refund could be for the unemployment compensation that was excluded from your income.

[JW4141]

Thank you!