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Level 2
March 15, 2021
Question

Significant Refund Delay (with no info provided from the IRS)

  • March 15, 2021
  • 4 replies
  • 0 views

I filed on 2/8/21 and was told that I should have received my refund on 3/5, which I haven't as of this writing (3/15/21). I also cannot find any info on the IRS website. My concern is that this stems from one of two, if not both, things: I had inadvertently checked that I was a dependent in 2019, which is incorrect, and thus never received any stimulus payments, eventhough I made well below the maximum for eligibility. Secondly, I collected UE benefits last year, and filed prior to the signing of the American Cares act, which would now allow the first $10,200 of benefits to be tax free and, thus, render me a larger refund. Could this be the cause of the delay.

 

Since the IRS website and automated line has rendered me nothing in the way of information, have you acquired any information of late as to why someone in my situation would have such a delay?   I was recently informed through an article in Century Foundation of the following:  "If you filed a return and haven’t heard anything back from the IRS, and you have unemployment insurance benefit income reported, you should expect some delay in processing your return. If you were expecting a refund, know that the refund may be delayed as a result; but the good news is the refund will likely be larger than what you originally claimed."

 

Please assist, as this is quite frustrating, since the IRS is not being forthcoming as to why they are withholding my refund.  Thanks very much.

4 replies

Level 15
March 15, 2021

The IRS issues refunds, not TurboTax. This means that we cannot say for sure why you have not received your refund if it has been longer than 21 days since you e-filed.  

 

You have a number of issues with your return with the dependent / nondependent issue and unemployment income.  Then we add the items listed below.

 

The IRS says that it will issue 9 out of 10 refunds to taxpayers in less than 21 days.  However, if:  

  • You have e-filed your 2020 Federal tax return,
  • You are claiming a Recovery Rebate Credit (RRC) on line 30 of the 2020 1040 tax return, and
  • Your tax return has been accepted by the IRS. 

We suspect that the IRS will scrutinize stimulus payments that were issued against the tax returns that claim the Recovery Rebate Credit.  We do not know how much delay that the IRS will incur in such cases. 

 

Implementation of the American Rescue Plan will further strain the resources of the IRS.  IRS live phone assistance is extremely limited at this time.  For stimulus payment questions, call 800-919-9835.

 

Follow the TurboTax COVID Tax Center and the IRS Economic Impact Payment Information Center for further developments.

 

The dependent / nondependent issue is what generates your stimulus payments as Recovery Rebate Credit (RRC) on line 30 of the 2020 1040 tax return.  We have no rule-of-thumb as to how long that will delay your tax return.

 

I would agree with much of what Century Foundation is telling you.  We do not know how the IRS will respond to this abrupt and mammoth change in tax policy half-way through the tax season with millions of tax returns already processed.  This TurboTax Help states:

 

The IRS will provide additional guidance about what you need to do to take advantage of this relief if you already filed your 2020 tax return. 

 

The Help also allows you to sign up for information as we learn it from the IRS.

 

I suspect that you will not have to amend your filed and accepted 2020 Federal 1040 tax return.  But that is just a guess.

 

As involved as the project of correcting millions of filed tax returns half-way through the season might be, the IRS likely does not want millions of paper-filed 1040x amended returns overwhelming them. 

 

Hope this helps.

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Level 2
March 17, 2021

Thanks, James.  I can only assume that, however long it takes them to issue my refund and stimulus, it stems from the issues that I noted - which is largely why I wanted to do my taxes as early as possible.  Hoping that, if there were delays, it wouldn't result in my waiting through the Spring to receive money.  I can only hope that I still won't need to wait that long.    And I know I'm one of millions who are in this position and need this money., and are not receiving any information from the overwhelmed IRS.  A perfectly annoying fiscal storm, at the moment.

ReneeM7122
Level 9
March 17, 2021

Correct, the IRS is quite difficult to reach and it may be a challenging to track information about your refund and / or stimulus.  Here are some more links that could help. 

 

If you didn't receive your stimulus and it went to the form of a refund due to the Recovery Rebate Credit on your 2020 tax return, please check this link for more information.

If you never received the stimulus at all and did not declare it on your tax return, please check this link.

Here is the link to see your Online Tax Account.

Here is a TurboTax article with the latest information about the third stimulus payment.

 

@Damiano123

Level 4
March 17, 2021

We’re all screwed just got off the phone with IRS verified turbo tax did mess up my taxes had an adjustment done said I’ll get a letter soon and a refund in 5 more weeks or more maybe all turbo tax fault

Level 2
April 5, 2021

I file my tax with Turbo tax was accepted by the IRS on Feb 27 but I haven't got my refund yet an no explanation from the IRS>

AmyC
Level 15
April 16, 2021

Filed electronically March 13. "Tax return being processed" is only information I have. @Damiano123 I assume you mean "refund" when you say "I got my return last week".


The IRS is having a hard time this year. Each return must be cross checked for the normal and now with the new laws:

  • stimulus- is it correct, pay missing amounts, do they need to be added for the new stimulus
  • unemployment - is it on there, was it filed with the $10,200 subtraction, does it need to be adjusted
  • premium tax credit - is it on there, is there an amount due, adjust the return
  • EIC - is it on, were they banned, is there a record of release to claim?
  • Child credit -anybody else claim, how old are kids, what is allowed
  • and so on for still more, it is a long process this year to check each return for so many things.

 

The IRS is also processing returns mailed in last year and handling the current stimulus. They have scheduled this summer to adjust unemployment on returns.

 

@Love2Fish If your return is a w2 with none of the credits, it will fly through. Each additional thing will take a little longer.

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Level 4
March 17, 2021
  • We’re all screwed just got off the phone with IRS verified turbo tax did mess up my taxes had an adjustment done said I’ll get a letter soon and a refund in 5 more weeks or more maybe all turbo tax fault
Level 2
July 14, 2021

There is something definitely wrong with the Turbo Tax filings this year, and I don't think the company is being honest. My return was accepted on 4/17 and the IRS Website noted "Your tax return is still being processed." 

After 60 days, I decided to  send in another copy using a different Tax program and my refund was issued in 21 days. I changed the amount on the tax filing, so I would know which one was processed first. My Turbo Tax return still shows that is being processed. We all deserve a refund!