Amended Refund

[jazzmin]

I have received my amended refund for unemployment taxes paid, but I have yet to receive my initial tax refund. What does this suggest?

[VolvoGirl]

Why do you expect it to be the same or more as the original refund?   Did you get the first refund yet?   The adjustment is only for the taxes paid on the 10,200 unemployment exclusion.    You don't necessarily get back all the withholding taken out of your unemployment.

[jazzmin]

No I have not received the initial refund. I have only received the amended unemployment refund.

[Michele_H]

Thank you @VolvoGirl  Hi @jazzmin!

 I have some suggestions for this situation;

1.  Check your refund status via the IRS Where's my refund portal.   If it still says processing this means the IRS is still working on your return.   https://www.irs.gov/refunds

2.  Set up  an account on the IRS website if you are able to and look to see what adjustments have been made on your tax return transcript.  https://sa.www4.irs.gov/eauth/pub/login.jsp

3.  Follow the instructions listed below:

If you would like to contact the IRS about the status of your refund, you can try these instructions:
The IRS telephone number is 1-800-829-1040, and they are available from 7 a.m. – 7 p.m. Monday thru Friday. The best time to call is early in the morning.
The first question the automated system will ask you is to choose your language.
Once you’ve set your language, do NOT choose Option 1 (regarding refund info). Choose option 2 for “Personal Income Tax” instead.
Next, press 1 for “form, tax history, or payment”.
Next, press 3 “for all other questions.”
Next, press 2 “for all other questions.”
When the system asks you to enter your SSN or EIN to access your account information, do NOT enter anything.
After it asks twice, you will be prompted with another menu.
Press 2 for personal or individual tax questions.
Finally, press 4 for all other inquiries. The system should then transfer you to an agent.

[tsmeadow]

Hello @jazzmin,

I hope you are doing well today.  You stated that you have only received the unemployment exclusion refund, but not the original refund amount.   Just to clarify, was your original refund amount more than what you received from the IRS?   (For example, your original refund was $1,000, but the unemployment exclusion added $500, making the total refund $1,500.  You only received $500).  

From my experience, the IRS is not issuing the additional unemployment income exclusion refunds if the original filed return is under review.  Your 2020 return could be under review for a multitude of reasons, such as credits being claimed that should not have been claimed.  One of the most common reasons that the IRS is holding returns under review is because a taxpayer claims a Stimulus Payment/Recovery Rebate credit that was previously received.   

Because the IRS issued a refund, I think the IRS may have adjusted your original return and believe that the refund amount sent to you is the total correct refund amount.  If the IRS makes a change to your filed return, they are required to send a letter in order to explain the changes. 

Also, It may be possible that the IRS sent your third stimulus payment (if you had not received it) and it has been mistaken as your unemployment income exclusion refund.  If the amount is $1,400 (you file single with no dependents), then that may be the case. 

 I would recommend contacting the IRS by telephone or accessing your Account Transcript online to determine any issues.  You can use the link below to order your 2020 Account Transcript Online.  The transcript will detail any changes made or refunds issued to your 2020 return.

Link: https://www.irs.gov/individuals/get-transcript

Alternatively, you can contact the IRS at 1-800-829-1040 to determine the cause of the problem.  You can also try 1-800-829-3903, which is IRS Collections.

I hope this helps.  Thanks for using Turbotax Live!

Taylor, Tax Attorney, 11 Years