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jfear
Level 2

Refund increased after update and the return was filed

I filed my returns electronically on March 20th, when I went on to check the status of the returns, the refund amount increased substantially due to an update.  So my refund amount I received on 3/27 is much lower than the updated amount.

What caused this to happen?  Do I now need to file an amended return?

1 Best answer

Accepted Solutions
SweetieJean
Level 15

Refund increased after update and the return was filed

13 Replies
SweetieJean
Level 15

Refund increased after update and the return was filed

jfear
Level 2

Refund increased after update and the return was filed

Thank you so much for responding!  I did have unemployment income.  I thought it had something to do with the relief package but could not find the information.  I really appreciate your assistance!

fctmaghoul
Level 2

Refund increased after update and the return was filed

My refund amount increased after I updated and I don't have 1099-G  or any unemployment related stuff. Do I have to file an amendment? 

JotikaT2
Expert Alumni

Refund increased after update and the return was filed

The best thing you can do is compare what is showing in the program to what was actually filed.  This will help you determine where the difference arises from and help you determine if you need to file an amended return or not.

 

Instructions to download tax returns

 

You can preview what is shown in TurboTax by viewing your tax summary.

  1. Go into the black panel on the left and select Tax Tools
  2. Then select Tools beneath Tax Tools. 
  3. A "Tools Center" box will pop up, select "View Tax Summary" 
  4. You will see a screen that gives a snapshot of your taxes based upon your input so far. 
  5. Click on the black panel on the left bar and select Preview my 1040
  6. This will allow you to review your overall line items on your federal tax return.  Compare these amounts to your actual tax return for 2020 as filed to help you determine why there is such a large difference from year to year.

 After you review the above items, simply select "Back" in the black panel to get back to the interview forms. 

 

Once you identify where the changes are from, you can determine whether an amended return is needed or not.  Please see the links below for additional guidance.

 

Do I need to amend? 

 

How to amend my return? 

 

@fctmaghoul

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fctmaghoul
Level 2

Refund increased after update and the return was filed

Thanks for quick reply.   Looking at the summary, it tells me the difference is in the total tax calculation.  Somehow after today's update the total tax has decreased, everything else matches the return I efiled with IRS on March 8th.    Now what doI need to do?

DawnC
Expert Alumni

Refund increased after update and the return was filed

Did you have any Paid Family Leave?   The summary shows a different tax calculation, but the calculation changed because either the income, deductions, or credits changed.  You have a couple of options - 

 

You can file the amendment - the 1040X will detail the changes

You can prepare the amendment to see the 1040X to determine whether or not you need to file the amendment

You can wait for the IRS to fully process the additional refunds - you have 3 years to file the amendment, so this may be your best option.

 

Has your original return been fully processed and did you receive your full refund?   Also, does the recovery rebate on Line 30 have anything to do with the changes.   Did you originally claim it or is it on the return that is in TurboTax now?     @fctmaghoul

 

How to amend

 

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fctmaghoul
Level 2

Refund increased after update and the return was filed

Thanks for getting back.  After the update, the return no longer has any amount from Schedule 2 line 3 on line 17 of 1040-SR. The Schedule 2 and the related Form 8962 are not there.   The Schedule 2 and form 8962 deal with Excess advance premium tax credit. Before the update and the returns I filed with IRS had all these missing parts!  Now I am not sure why these forms are missing, since I have not changed anything except updated the TurboTax software.

jfear
Level 2

Refund increased after update and the return was filed

@JotikaT2 

Because the increase in refund was due to unemployment should I file the amended return?  I know it has been said that we shouldn’t file an amended return that the additional refunds will be sent.  I haven’t received the additional amount so I am wondering if it would be best to file the amended return.  
Please let me know your thoughts.  Thank you!

fctmaghoul
Level 2

Refund increased after update and the return was filed

yes my original return has been fully processed and I did get back my refund.

JotikaT2
Expert Alumni

Refund increased after update and the return was filed

Most likely not.  Unless amending your return generates any credits you were not entitled to before, you would not need to amend the federal return.

 

The IRS has just started issuing refunds related to the unemployment income.

 

Please see the link below to get more information as it relates to your account.

 

Get My Payment

 

@jfear

 

The change is due to other changes that was enacted as part of the American Rescue Plan.  In your case, the Excess Advanced Premium Tax Credit is no longer required to be paid back.  Therefore, your return online is lower to reflect this change that occurred during the tax filing season.  Please see the link below for additional information.  At this point in time, the IRS is asking taxpayers not to amend their returns as they are taking steps to reimburse taxpayers accordingly.

 

IRS information regarding Premium Tax Credit

 

Reconciling premium tax credit

 

@fctmaghoul

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fctmaghoul
Level 2

Refund increased after update and the return was filed

Thank you!

jhotulski
New Member

Refund increased after update and the return was filed

I filed my taxes in March prior to the announcement that certain amount of unemployment was not taxable.  Because of that I paid both state and federal income taxes.  I was able to complete state of CT amended tax online and I received the overage I paid within a week.  In mid April 2020, as I attempted to complete IRS 1040x form I was not allowed to complete it online, instead the 2020 IRS tax form 1040 I filed changed indicating the new amount that I should've been refunded.  

I proceeded to manually complete IRS 1040X and mailed it in around April19th or 20th.  Here I am 3 months later and I do not have a refund of the overpayment and the IRS website indicates they have not yet received a 1040X from me.  Of course, because of COVID no one answers the IRS phones and the IRS office in my city does not allow any walk ins without an appointment which cannot be made on line or by phone.

 

Is it possible that turbo tax reverts my IRS 1040 form to my original file and then perhaps I could electronically file a 1040X???

 

PS-I believe I entered jkotulski as user name not jhotulski - will I still get an email notification with an answer to my dilemma?

jfear
Level 2

Refund increased after update and the return was filed

I am also waiting on my overpayment due to unemployment.  The IRS requested the taxpayers affected not file an amended return.  

this is an update from the irs regarding the refunds from July 13th:

IR-2021-151, July 13, 2021

WASHINGTON — The Internal Revenue Service announced today it will issue another round of refunds this week to nearly 4 million taxpayers who overpaid their taxes on unemployment compensation received last year.

The American Rescue Plan Act of 2021, which became law in March, excluded up to $10,200 in 2020 unemployment compensation from taxable income calculations. The exclusion applied to individuals and married couples whose modified adjusted gross income was less than $150,000.

Refunds by direct deposit will begin July 14 and refunds by paper check will begin July 16. The IRS previously issued refunds related to unemployment compensation exclusion in May and June, and it will continue to issue refunds throughout the summer.

To ease the burden on taxpayers, the IRS has been reviewing the Forms 1040 and 1040SR that were filed prior to the law's enactment to identify those people who are due an adjustment. For taxpayers who overpaid, the IRS will either refund the overpayment, apply it to other outstanding taxes or other federal or state debts owed.

For this round, the IRS identified approximately 4.6 million taxpayers who may be due an adjustment. Of that number, approximately 4 million taxpayers are expected to receive a refund. The refund average is $1,265, which means some will receive more and some will receive less.

Most taxpayers need not take any action and there is no need to call the IRS. However, if, as a result of the excluded unemployment compensation, taxpayers are now eligible for deductions or credits not claimed on the original return, they should file a Form 1040-X, Amended U.S. Individual Income Tax Return.

Taxpayers should file an amended return if they:

  • did not submit a Schedule 8812 with the original return to claim the Additional Child Tax Credit and are now eligible for the credit after the unemployment compensation exclusion;
  • did not submit a Schedule EIC with the original return to claim the Earned Income Tax Credit (with qualifying dependents) and are now eligible for the credit after the unemployment compensation exclusion;
  • are now eligible for any other credits and/or deductions not mentioned below. Make sure to include any required forms or schedules.

Taxpayers do not need to file an amended return if they:

  • already filed a tax return and did not claim the unemployment exclusion; the IRS will determine the correct taxable amount of unemployment compensation and tax;
  • have an adjustment, because of the exclusion, that will result in an increase in any non-refundable or refundable credits reported on the original return;
  • did not claim the following credits on their tax return but are now eligible when the unemployment exclusion is applied: Recovery Rebate Credit, Earned Income Credit with no qualifying dependents or the Advance Premium Tax Credit. The IRS will calculate the credit and include it in any overpayment;
  • filed a married filing joint return, live in a community property state, and entered a smaller exclusion amount than entitled on Schedule 1, line 8.

Taxpayers will generally receive letters from the IRS within 30 days of the adjustment, informing them of what kind of adjustment was made (such as refund, payment of IRS debt payment or payment offset for other authorized debts) and the amount of the adjustment

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