Federal and state Amended Returns

[jyeh74]

I thought amended refunds are physically mailed to you.  I got direct deposit for amended state refund.  Is amended federal refund also direct deposited now?

[xmasbaby0]

No.   The IRS does not make direct deposits for amended returns.  They only mail you a check.

Even during “normal” times it takes about four months for the IRS to process an amended return.  During the pandemic and due to the severe backlog at the IRS it is taking much longer—six months or more for many amended returns.  Do not expect quick results from amending.  When the IRS issues a refund for an amended return it will be by check.  They do not make direct deposits for refunds for amended returns.  You can watch for information here:

https://www.irs.gov/Filing/Individuals/Amended-Returns-(Form-1040-X)/Wheres-My-Amended-Return-1

[jyeh74]

@xmasbaby0 How did I get a direct deposit for the exact amount of my refund?

[fanfare]

Your state tax returns don't go through the IRS.

[xmasbaby0]

@jyeh74 You said you amended federal and state.   The direct deposit you mentioned was from your state-----not the IRS.   Some states will send a direct deposit for an amended state return.   The IRS deals with federal tax returns---and the IRS will NOT send a direct deposit for a refund for an amended federal return.   

[Shawnagill]

I have a question about this too because I got something from the IRS on the 28th direct deposit  but was $2000 less than my return was suppose to be. I didn’t nor amend state or federal. So now I’m working what that was for and if I’m still getting another check? There was another page that said direct deposit amended returns were starting to go out on the 28th even though their website it also says amended federal returns were not allowed at this time.

[Shawnagill]

Edit to say: I didn’t amend state JUST federal.

[VolvoGirl]

Federal and state refunds come separately.  The IRS will mail you a letter saying what they changed. Did you amend or not?  Why are you mentioning about Amended returns?

A common adjustment is if you claimed the Recovery rebate credit on 1040 line 30 when you already got the Stimulus payment or got the second one after you filed or reported the wrong amounts or entered the wrong amounts in the 2 boxes.  If you entered the total you got for both rounds in the same box it would think you didn't get the other one.  The IRS knows how much they already sent you.  You might have tried to claim it again on line 30.

[xmasbaby0]

@Shawnagill  Not sure what you saw or think you saw.    The IRS never makes direct deposits for refunds for amended returns.  They only mail checks when there is a refund for an amended return.  Further, you say you did not amend, so nothing pertaining to amended returns applies to your situation.

You say that your refund was less than you expected.

Did you enter  ALL of the stimulus money that you had already received correctly in the recovery rebate credit section when you prepared your 2020 return?  The IRS cross checks and if you did not enter all of the money you received, they recalculate your refund.

MY REFUND WAS LESS THAN I EXPECTED

There can be a number of reasons why your refund was less than the amount you expected. First of all, look carefully at your actual tax returns.  There is sometimes confusion about the amount of refund to expect when users misinterpret the “summary” they saw in TurboTax. The amount of your refund is on your tax return.  Federal refund is on line 34 on Form 1040  State tax forms are all different so we cannot tell you what line to look at on your state form.  BUT it is important to actually LOOK at your tax return forms yourself and see the amounts of your tax refunds and/or tax due.  A lot of confusion would be avoided by doing that.

TurboTax does not receive feedback from the IRS regarding money that was offset from your refund.  If you owed back taxes, child support, student loan debt, etc. you will receive a letter of explanation from the IRS in several weeks.  The WMR site will contain a message regarding your offset.  It is also possible that the IRS caught a mistake you made and reduced your refund. 

A possible reason for the reduction could be that the recovery rebate credit was completed incorrectly and you may have entered the amount of stimulus already received wrong, which could have reduced the refund you thought you were seeing.

 It is also possible that your state reduced your refund for debts owed in your state—if the state reduced your state refund you will receive a letter from the state.

https://www.irs.gov/uac/tax-refund-offsets-pay-unpaid-debts

 IRS Treasury Offset Program Call Center at 1-800-304-3107

Be aware also that your Federal refund and state refund do NOT come together.  Federal and state tax returns are processed by two completely separate entities.  There is no rule as to which one will come first,

Did you choose to have TT fees deducted from your Federal refund?  (Remember that if you did that, you also agreed to an extra refund processing fee of $39.99)

How can I see my TurboTax  fees?   

https://ttlc.intuit.com/questions/2565973-how-do-i-review-my-fees-in-turbotax-online

 https://www.irs.gov/uac/tax-refund-offsets-pay-unpaid-debts

https://ttlc.intuit.com/community/refunds/help/what-is-a-refund-offset/00/26301

Reduced Refund      https://www.irs.gov/taxtopics/tc203

 NOTE: You can contact the IRS Treasury Offset Program Call Center at 1-800-304-3107 to ask if they have an offset for you on file. TurboTax would not have that information.

https://turbotax.intuit.com/tax-tips/tax-payments/who-can-garnish-an-income-tax-refund/L7cPPzDyc

[Shawnagill]

Yes that was a typo that I tried to correct. I amended federal not state. I also posted the IRS site that said it along with a screenshot of where it was in the article. 

[VolvoGirl]

Ok, did you wait for the original return to finish processing and you get the first refund before you amended?  Why did you amend?

You will still get the refund from the first original return or still need to pay the first tax due.  In fact you should not even amend until the first return has fully processed and you get the first refund or your tax due payment has cleared.  

Then the amended return is only for the difference you get back or owe.  I think the cover sheet shows what the original return WOULD have been if you did it right the first time.

[Shawnagill]

Yes we filed in February and got the original payment in March. Then we amended in April and waited about 13 weeks and it just changed to processed on the 30th. However on the 28th we did get a DD from the IRS but the amount was way off from what the amended return said. 

[VolvoGirl]

Did you enter any unemployment on your return?  They may have recalculated your return for you.

If you have filed early before the exclusion, the IRS will recalculate your return for the new 10,200 unemployment exemption for you. There is no need for taxpayers to file an amended return unless the calculations make the taxpayer newly eligible for additional federal credits and deductions not already included on the original tax return.

[Shawnagill]

Here is the article again, for some reason that reply keeps getting deleted.

https://www.irs.gov/newsroom/irs-continues-unemployment-compensation-adjustments-prepares-another-1-...

[Shawnagill]

Yes my husband an I both had unemployment income and when I got the email from turbo tax to amend the return that’s when we did.