I did an e-file on my taxes, noticed it was taking longer than normal to refund. Kept saying processing. I found that for our two EV vehicles we are not able to get a tax credit for them because they are on a lease. The amendment would take off about 8,052 on our return. We are still due 3256 back but the amendment says that we would need to pay back the 8052. So I did the option to mail them a check since we don't have those funds in our account. If we haven't received any money yet, will they recognize this and then still give us the 3256 back via direct deposit?
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Please clarify if you received an initial refund and if so for how much?
Amended returns balance out what occurred on the tax return with what the true correct final return should be.
The IRS typically takes 16 weeks to process an amended tax return.
Refunds due on an amended tax return are paid via check and not via direct deposit typically.
Typically you would not need to physically transfer funds with an amended return that still has a refund due as a bottom line.
You would either be transferring funds because you have a balance due on the amended return or your would be getting a refund.
We have not received any initial refund. Our status kept saying processing which made me wonder if I made an error which led to the EV vehicles. For the initial refund I said direct deposit, for the amended return I said I would mail them a check with hopes that they would see that I have not received the initial and then direct deposit the correct amount.
Initial Refund was 11308 with the amendment it would be 3256.
It depends. It has always been a standard practice in the past where the IRS will issue a full refund for the initial return and in return, the taxpayer was expected to submit a check if they owed money on the amended return. Don't depend on the IRS to detect that you haven't received the initial return and then offset that amount with the amount you owe on the amendment.
If thats the case then what I did was the best course of action. That way if they put the money into my account then I will send them a check for the amended amount and all will be good. I'll just wait to see what happens and go from there.
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