Didn't receive a refund I expected for my Amended Return

[Bob in Plano]

I amended my 2023 tax return and had two separate issues that dictated a refund (or refunds). One refund was for a mistake of paying taxes on double the interest I earned from one bank which I did receive a check for the correct expected refund amount of $452.

However, the other issue I expected to receive a refund for was to use my loss carryover (BTW, I had much more than $3k of carryover) that on my original tax return I failed to carry my loss carryover forward to use it - and this was fully noted in my amended 1040X and I also explained that I failed to carry it forward when I originally e-filed my tax return. My problem is that I did not receive a refund of $661 that I was expecting for the adjustment of failing to use my loss carryover in my original tax return filing. 

I mailed the amended 1040X tax return and it had the total refund amount I am due ($1,113)  clearly stated, but I only received a refund check for $452 for the correction the double interest I had paid taxes on. I did not receive a refund check for $661 for the  correction of not using my loss carryover.  Both amended corrections ($452 & $661) totaled $1,113 which was clearly stated on the 1040X amended return.      

Why would I not be refunded with one check the full amount I am owed? Does the IRS send separate checks when there are two separate issues dictating refunds?  I would have thought I'd receive just one check for the full amended refund of $1,113.  So, this confuses me! 

Can an experienced TurboTax expert in such matters spread some light on this mystery for me, please?    

Does one IRS agent handle certain amended issues (e.g. interest) and then passes it on to another agent that handles different amended issues (e.g. loss carryover)?  

Should I be expecting an explanation from the IRS about my refund and about the lack of my expected refund for the loss carryover correction? Do you think the reason I did not receive the expected amended amount will be explained?  The IRS website states: 'Your account was adjusted on April 26, 2024. Within three weeks, you will receive a notice that explains the adjustment.' I really don't see how this makes much sense when I've already received a check for less than the amount I should have received.    

I'm looking for some wisdom so I can learn how this works! 

What should I do to recover what I'm owed for failing to use my loss carryover that I expected to be refunded via my amended 1040X? 

[Bob in Plano]

Is there a TurboTax expert out there that can help me? 

[VolvoGirl]

Did you wait to amend until after the original return was processed and you got the first refund or paid a tax due?  The IRS may have adjusted your original return.  

Does your original amounts show up right on the amended return?  You may have needed to change the amended return to include any changes the IRS made to the original return before making your changes.

Go by the actual 1040X.  Line 18 should be your original refund amount and line 22 should be your additional refund.  If you paid on your original return it will be on line 16.  If there is an amount owed with the amendment, it will be on line 20.

[Bob in Plano]

Yes, I had already filed my original return and it was accepted and I was paid a refund of $4,047 before I worked up the 1040X and mailed it. 

Line 18: Overpayment of $4,047 (which I was paid before mailing my 1040X)

Line 22: Amount on Line 21 you want paid to you: $1,113 (which is the amount I posted above that I am owed) 

Line 20: Amount you owe: 0 (Zero)   

Per the 1040X I am owed a total of $1,113 additional refund:

$452 (which I have just received payment with a check) for overpaying interest due to double the interest amount mysteriously showing on my TT return) 

$661 (which I have not been paid and I do not know what to expect) for having not used $3k Loss Carryover, which I have much more than $3k, and I should be entitled to use - and is on my 1040X. 

VolvoGirl - Thank you for helping me. I appreciate it. 

What should I expect pertaining to the $661 refund for the Loss Carryover issue?  

[Bob in Plano]

TurboTax Community Support - Do you think the IRS will mail me a separate check for the $661 to take care of the amended Loss Carryover correction?   

What are the chances the IRS will consider my amended return finished and closed even though my 1040X addresses two items that dictate refunds for which they have only refunded and settled just one thus far?    

[Bob in Plano · Accepted solution]

Maybe an 'Expert Alumni' knows about this and can weigh-in to answer:

My Amended Tax Return is shown on the IRS website as 'Adjusted' but not yet 'Completed'. 

Having received a refund check for just one of the two amended tax return correction amounts, both corrections resulting in a refund, does this not yet completed status mean I will receive another refund check for the other correction?     

[JotikaT2 · Accepted solution]

Assuming you have filed a second 1040X, it will be processed by the IRS based upon the order in which the amendments were sent.  If you only filed one 1040X, and had 2 changes on the amended return, the IRS would evaluate the entire amended return as one review.  It sounds like you are dealing with the latter.  Based upon the IRS status you are seeing, it sounds like the IRS did adjust your refund.  

The IRS will mail a letter to you explaining the difference between the amount on your amended return to the amount you actually received.  Please see this link for more details on how amended returns are processed and what the different changes in status mean.

[Bob in Plano]

JotikaT2, 

Yes, I filed just one 1040X and I have received just one check for one of the two amended corrections. 

Based upon the IRS status, the IRS did adjust my refund, but for some reason only refunded me for one of the two amended corrections which both resulted in a refund.   

I'm hoping since my amended return is not marked as 'Completed' on their website, and I only received a refund check for one of the two amended corrections,  I'm assuming that means I'll receive another refund check for the remaining correction - and then my amended return can be marked as 'completed'. But I'd like to know that is correct.  

I'm confused why the IRS didn't take care of both corrections (resulting in a refund for both corrections) in one refund check amount.  What do you make of them refunding me for just one of the two corrections instead of both together? 

I want to receive another check for $661 for the other correction before it's marked as completed!

[JotikaT2 · Accepted solution]

The IRS is your best source to determine what the status is of your return and remaining refund.  I'd recommend contacting them directly using the number in the link provided.  You can also reach out to a Taxpayer Advocate as they may be able to get you a firm answer as to where your amended return is in the process of being completed and possibly the reason on why the IRS has only issued part of your refund from your amended return.

Typically, the IRS would not issue just part of the amendment correction.  They would evaluate the entire amended return, and then request additional support if anything is in question before submitting a refund.  

[Bob in Plano]

I  received a notice in the mail today from the IRS explaining the $452 refund I have already received for overpaying too much for interest income (because my interest income from one financial institution was duplicated, essentially doubling the tax owed).

This explanation notice from the IRS had a phone number to call if I had any questions - so I called it to inquire about the $661 refund I want to be paid once the IRS adjusts my 1040 tax return due to me not using $3,000 of my available Capital Loss Carryover.  I asked for this to be corrected/adjusted in my 1040X amended tax return.

I also wanted to use the phone call to find out why I was not refunded the $661 at the same time I was refunded the $452. It seems just one check totaling the $1,113 I want to be paid would have been easy to do.

When I called the phone number on the notice I was politely asked to leave my phone number and  was told I'd get a return call for Area Code 304 (West Virginia) in 37 minutes, which I did. The IRS agent that called gave me his name and IRS Badge number (he was actually on the west coast in California but the 304 area code is commonplace for some reason) - however the IRS agent told me he handles 'collections' so he kindly forwarded me to another IRS department agent (who also gave me his name and IRS badge number) that handles income related 'refunds'. Everything was very professional an efficient. The agents were very pleasant and displayed experience and expressed a true desire to understand and provide help.  This first twenty minutes with the 'refund' department' IRS agent was spent with the agent reviewing both my original 1040 tax return and my amended 1040X tax return which required him to put me on hold for about 5 minutes 2-3 separate times. When he understood that I was inquiring about the $661 to adjust my Capital Loss omission on my 2023 1040 he added some precise information we discussed to my file about me not getting a $661 refund for the Capital Loss issue when I as refunded the $452 overpayment for interest income. He convinced me he totally understood my inquiry and said anyone looking at my file would now see the information he added and would thoroughly understand it as well. He told me another department actually handles Capital  Loss issues and he sent my information to that department. He was very good and totally understood everything and explained to me that a refund might be taken care of (i.e. refunded) without any further involvement from me, however he suggested that I should send the U.S. Treasury IRS in Austin, Texas a letter outlining the issue.  I decided that was good advice. I hope it helps the IRS refund my $661 a little quicker - - then they can mark my Amended tax return 'completed'! 

Below is my letter I mailed to U.S. Treasury- IRS in Austin, Texas:          

May 7, 2024

Reference: Tax Year 2023
Amended 1040X Tax Return
Social Security# xxx-xx-xxxx

I filed an amended 1040X tax return for tax year 2023 to correct two mistakes on my original 2023 Federal tax return which resulted in a total of $1,113 to be refunded to me. One mistake correction was for paying taxes on too much interest income for which I have already been refunded the correct amount of $452 which I received by check.

I have not received a refund for the other correction, which is explained below:

When I was doing my 2023 Federal tax return using TurboTax I apparently made a mistake and incorrectly selected ‘No’ when asked if I wanted to use $3,000 of my remaining Capital Loss Carryover. My 1040X was sent to amend this Capital Loss Carryover omission along with adjusting the interest income correction.

By not using the $3,000 maximum Capital Loss Carryover on my 2023 Federal tax return, this resulted in me paying $661 too much in Federal tax - which is the reason for my amended 1040X tax return. I expect to receive a refund of $661 for the adjustment to correct this.

At the time I was working on my 2023 Federal tax return I had $233,898 Capital Loss carryforward for tax year 2023 after filing my 2022 taxes.

As explained, by mistake no Capital Loss Carryover was used on my 2023 Federal tax return which I want corrected/adjusted per my 2023 1040X amended tax return.

The following is my Capital Loss Carryover amounts for the past few years:

2020: $242,910 ($239,898 carryforward amount for 2021)
2021: $239,898 ($236,898 carryforward amount for 2022)
2022: $236,898 ($233,898 carryforward amount for 2023)
2023: $233,898 (After adjustment of my 2023 Form 1040-SR tax return per my 1040X amended tax return and the IRS refunding me $661, there will be $230,893 remaining Capitol Loss carryforward amount for tax year 2024)

IRS, please forward to me a refund check in the amount of $661 to adjust my 2023 Form 1040-SR.

Best regards,

xxxxx xxxxx