Tax Refund Delta

Forum|Forum|5 years ago
July 1, 2021
2 replies
37 views

When I filed my taxes on March 29,2021 TurboTax indicated I had a refund coming. When I went into TurboTax to track my refund on June 22, 2021 TurboTax was updated and showed I was getting a bigger refund than what I had submitted on my taxes. Two questions

1. Why the change in the amount when no changes were made to my initial tax filing

2. What do I need to do to claim the larger amount that TurboTax indicates should be the correct refund

Thank you

KochuK

Level 7

(1) You should compare the original e-filed version with the current version within TurboTax to identify what has changed and what are the components of increased refund amount. You can call TurboTax for assistance on this task.

(2) Once identified, a Tax Expert will advise if you need to file an amendment to claim the bigger refund.

One common example is the exemption up to $10,200 of 2020 unemployment compensation from American Rescue Plan (ARPA) enacted retroactively during 2021 filing season. It might reduce tax liability, increase current credit amounts or even trigger new credit that is not on the original e-filed tax return. Below is more information on this topic.

https://www.irs.gov/newsroom/irs-sending-more-than-2-point-8-million-refunds-to-those-who-already-paid-taxes-on-2020-unemployment-compensation

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VolvoGirl

Level 15

Did you enter any unemployment?

If you have filed early before the exclusion, the IRS will recalculate your return for the new 10,200 unemployment exemption for you. There is no need for taxpayers to file an amended return unless the calculations make the taxpayer newly eligible for additional federal credits and deductions not already included on the original tax return.

Just keep waiting. The IRS is sending them out in batches over the summer.

See IRS article May 14, 2021

https://www.irs.gov/newsroom/irs-begins-correcting-tax-returns-for-unemployment-compensation-income-exclusion-periodic-payments-to-be-made-may-through-summer

And see,

https://www.irs.gov/newsroom/irs-sending-more-than-2-point-8-million-refunds-to-those-who-already-paid-taxes-on-2020-unemployment-compensation

Do you need to amend your state return?

https://ttlc.intuit.com/community/state-taxes/help/do-i-need-to-amend-my-state-return/00/2134732

If you didn't file early or Turbo Tax updated your return, your unemployment compensation will be on Schedule 1 line 7. The exclusion will be on Schedule 1 Line 8 as a negative number. The result flows to Form 1040 Line 8.