Refund issue

Forum|Forum|4 years ago
September 16, 2021
1 reply
4 views

Hello my Name is Tom Gaffey. In March of this year my wife and I filed our taxes using Turbo Tax. We ended up owing $38.00 based on our return. We mailed in our federal return along with our check.

We later found out that we did not need to declare unemployment money that we received in 2020 and after doing an update from Turbo Tax we found out that we were entitled to a $4175.00 refund on our Federal return.

We still have not received our return and I have made several attempts to find out the status of my return using the "Where's my return" link on the IRS Website. The Website does not recognize my information at all and provides no return information.

Wondering if you can help or advise? Thank you....

TurboTax PLUS Online

xmasbaby0

Level 15

It is not true that you did not "have to declare" your unemployment. The tax law changed in March and now the first $10,200 of unemployment is not taxed on your federal return. But anyone who received unemployment has to enter it on their tax return. So entering your 1099G was the correct thing to do. The IRS is issuing refunds to certain taxpayers who paid tax on unemployment.

So far the IRS has issued over 8 million of those “extra” refunds for tax on unemployment. The IRS has not announced when the next batch will be sent out, but they are still working on them.

The IRS is recalculating refunds for people whose AGI is $150K or below and who filed before the tax law that changed the amount of unemployment that is taxable on a federal return became effective.

The IRS began to send out the additional refund checks for tax withheld from unemployment in May. The refunds are being sent out in batches—starting with the simplest returns first. 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-already-filed-my-taxes/00/2081053

Please read this news from the IRS:

https://www.irs.gov/newsroom/irs-continues-unemployment-compensation-adjustments-prepares-another-1-point-5-million-refunds

https://www.cnet.com/personal-finance/taxes/more-unemployment-tax-refunds-are-arriving-but-when-heres-what-we-know/

And.....you say that you mailed your return. Mailed returns are taking a VERY long time to be processed. So it might be that that IRS is still working on your return. Did you use a mailing service to track it when you mailed it? Has the IRS cashed your check?

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

tgaffey1Author

Level 2

Thanks for your reply. Yes the IRS did cash our check. My fear is that because they cashed our check, they considered it case closed and figured they need not take any additional action. Wondering, are you a Turbo Tax rep?

xmasbaby0

Level 15

No I am not a TurboTax employee--just another user. The IRS is looking at returns on which unemployment income was reported, so be patient. They are still working on sending out refunds to folks who paid tax on unemployment. Unless the tax law change made you newly eligible for a tax credit like EIC that you were not previously getting at all, then the IRS does not want you to amend your return for the unemployment tax law change.