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....
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.
Please read this news from the IRS:
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?
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?
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.
Since you had a balance due on your original return and the IRS is accepted the payment this does not mean the original return has been processed yet. Due to staffing shortages returns with refunds and putting out stimulus checks are being done first so returns with balance dues on them will eventually get processed when they have time to get around to them. Once they process the original return it will be forwarded to the department that’s doing the unemployment exclusion changes. Unfortunately there’s no way to track where your return is in the processing however you can at least Check and see if your original return has been processed. By using the where’s my refund tool on the IRS site you can look up a balance to return if you enter a zero for the refund expected. So if you return shows that it’s been processed all you can do now is wait for them to recompute the return with the unemployment exclusion. Do not send in an amended return at this time.