Received Tax Refund for no reason

[RossAngelos]

So I filled my and my wife's tax for 2020 in May and paid 8k in Federal tax and 2k in State Tax. 

Fast forward, today, I received a check from IRS for 1,7k with no explanation, and just check on my name. 

The check seem to be legit as it has all watermarks and looks exactly as check from US Treasury. 

I have an account with IRS, so logged in and I see that they processed my payment for 8k and my due is $0, and there's no any mention about this check I received. 

What should I do in this case? 

[VolvoGirl]

Could be several things.  The new 3rd Stimulus payment (1,400 per person).  Did you have unemployment?  If you filed early before the 10,200 unemployment exclusion the IRS recalculated your return.  But your return should have included that if you filed in May.

Check each line on your return.  Maybe you entered some withholding or estimates wrong.  

[Critter-3]

Explanations are mailed a few weeks after the check arrives ... you can cash the check now or wait.  Look in the memo section ... what is posted there ? 

[RossAngelos]

My wife received UI, however we filed it after 10,200 unemployment exclusion, so we didn’t have to pay tax on that. 

As for stimulus, I have a direct deposit with IRS, and I received it a long time ago so this is definitely not a case. 

In a memo section it says: FRESNO 12/2020 TAX REFUND 30

Edit: Looked on my tax refund and I see that on line 8 I have UCE ( Unemployment Compensation Exclusion ) -10,200. 

[Critter-3 · Accepted solution]

That is a new one ... hold onto the check until you get the explanation letter.   If a scammer calls you then you know it is a fake ... do not talk to them or send them any gift cards.  

[RossAngelos]

Thanks! Good to know I should receive some explanation soon!

[RossAngelos · Accepted solution]

Ok, looking into that further, it seems like in certain states when married filling jointly you can exclude up to 20,400 in unemployment, even though only one spouse received UI. 

UI exclusion for married couples in CA due to community property rules. It states: “MFJ taxpayers may exclude up to $20,400 of unemployment income even if one of the spouses had less than $10,200 in UI and the other spouse had more than $10,200.” With that logic it would mean that if one spouse got $30k of UI and one spouse had NONE, then they can still exclude $20,400 of UI income.

This could be the best explanation why I received this tax refund.

In case anyone interested, there separate rules for Community Property states: https://www.irs.gov/newsroom/2020-unemployment-compensation-exclusion-faqs-topic-a-eligibility

also 

A4. If you entered an exclusion amount less than what it should have been based on  FAQ I'm married and live in a community property state. Am I eligible for the exclusion?, you do not need to file an amended return. The IRS will recalculate your exclusion amount following this guidance and adjust your return for the difference. These corrections are currently planned for later this summer. You will receive a notice regarding the correction within 30 days of your account being adjusted.