i worked with my daughter on her 2020 return using TT free. The return was submitted in early May. She received her federal refund as calculated by TT. Then a couple weeks later rec'd another direct deposit from the IRS for $1000+. My only guess for this second refund is that it is the result of the American Rescue Plan and the IRS determined my daughter was due the additional refund.
But when i checked her return to try to figure it out, I noticed Sched 1 for Add'l Income and Adjustments to Income showed her unemployment comp on line 7, but then had the same amount as a negative number on line 8 (Other Income) with the note "UCE." No idea what that means. Line 9 is $0, which also is entered on her 1040 line 8 for Other income from Sched. 1. IOW, it doesn't look like she paid taxes on the unemployment comp.
So why the additional refund from the feds? Anybody have an idea? thanks.
