I had taxes withheld from Unemployment, filed in February, just got our "adjusted" refund for the $10,200 and it was $5.92??

[clawmark]

Has anyone else gotten their IRS-adjusted refund for the Unemployment tax break?  I didn't expect it to come so early in May but it was auto-deposited into our checking account on 5/4. The difference between our TurboTax calculated refund before the break and what we got was exactly $5.92.  I was figuring at least 10%?  As there is no way to see what the IRS did, how can we even tell how they calculated this?  (As a side-note, we still haven't received our #3 stimulus and we were well below $150k both in 2019 and 2020.)

[AmyC · Accepted solution]

Save a copy of your return as is. Then you can click on add a state. This gets you back into the program without going into the amend mode. Then you can see the new amount based on the new laws. Compare the new refund with the old.

[clawmark]

Amy - AMAZING, thank you.  I had no idea how to get back in there.  So...the difference between what TT now says and what the IRS refunded us is $1,556.08!  That is more like what I would have expected.  Do I need to do an amend then?  If I amend but don't make any changes (apart from the new relief deduction that's already in there) do I basically just resubmit?  DEFINITELY worth it.

[SweetieJean]

$5.92 may be just interest.

[clawmark]

Yes, that was my thought too!  And if so, it means they didn’t make any adjustment at all for the unemployment.  I did go ahead and just resubmit an amended federal return with TT.  I didn’t make any changes at all to the return but it does show about a $1600 refund due!  🤞

[AmeliesUncle]

Yes, it was interest because they paid you after April 15th.

The IRS has specifically said NOT to amend unless you claiming a 'new' credit that was not on your original return.  They will automatically send a refund based on the changed unemployment.

[clawmark]

Well, eeks.  That was SUPER unclear by the IRS then because as I understood it they would correct the return and send the refund including the new amount, not two refunds??  Oh well, damage done.  I amended and they accepted it, so we shall see what happens!!!

[VolvoGirl]

Yes let us know how it works out.  If they send you the adjusted refund before they process your amended return.  Besides the small $5.92 deposit did you get the first original refund?  

I've been seeing posts about the small amounts.  We suppose it is for interest.  But interest on what?  A 2020 refund or I think on a 2019 refund.  

Did you see this one?  If you have filed. The IRS will recalculate your return for the new 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.
https://www.irs.gov/newsroom/irs-to-recalculate-taxes-on-unemployment-benefits-refunds-to-start-in-m...

[clawmark]

Yes, I have been going by that information al along and just waiting for one lump sum refund.  To answer your question, yes, it was our TT calculated original refund of about $5k plus the tiny amount.  Now TT shows we are due an additional $1600.  I will post back about the amended!!  It was “accepted by the IRS” within hours.

[AmeliesUncle]

Amended returns typically take 8 to 16 weeks (and probably much longer right now), so it is likely the IRS will automatically change your return even before they look at your amended return.  When they do look at your amended return, it is likely going to confuse them if they have already changed things.

https://www.irs.gov/instructions/i1040x#idm[phone number removed]920

[clawmark]

I will be very curious to see how it plays out.  Re-reading all of the articles I can find about the early filers with unemployment, it sounds pretty clear that they would correct the existing return and (as I read it) start issuing refunds of the new adjusted amount due.  It seems strange to start by refunding the original amount (auto-deposit) and then at some future date sending out a second payment of just the corrected amount.

I will post again when I have received another refund.  (Still no stimulus # 3!)

[VolvoGirl]

The IRS is sending the 3rd Stimulus payment out in phases.  Keep waiting.  See

https://www.irs.gov/coronavirus/get-my-payment

[fanfare]

it makes no sense that you would get $5 interest on a refund that you did not get yet.

It is not even past Tax Day  so there is no reason to pay interest.

You will probably get a rebate in late May.

IRS says: The adjustments for Joint returns won't start until after Tax Day.

Finally your amendment will be processed and adjusted down to zero.

[clawmark]

But we DID get our refund, in the non-adjusted amount (a little over $5k), plus the almost $6.  But NOT the amount for the unemployment adjustment.

[clawmark]

Just to follow up with information that was asked for.  We did just get (July 27) the adjust amount of our refund following my decision to submit an amended return.  Hoping that everyone else got their full amounts!