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New Member
posted Jun 23, 2021 8:10:50 AM

Is turbo tax having issues with unemployment refunds? I’ve had people tell me they messed something up with them and that’s why it’s taking forever.

I’ve had people telling me that turbo tax messed up unemployment refunds so that is the reason as to why people are not getting their unemployment refund from the IRS. I’m asking to get some clarification.

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2 Replies
Level 15
Jun 23, 2021 8:15:49 AM

This has nothing to do with the TT program and everything to do with the understaffed and overworked IRS ... this unemployment recalculation will take all summer  to get them all done.  There is no way to track or speed up the process so all you can do is wait patiently. 

Level 15
Jun 23, 2021 8:20:07 AM

When did you file?  Even if you didn't have unemployment the IRS is taking a lot longer to process and pay refunds.  Millions are still waiting.  You are not alone.

 

If you have filed early before the exclusion, the IRS will recalculate your return for the new 10,200 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.

 

Just keep waiting.  The IRS is sending them out in batches over the summer.

See IRS article May 14, 2021

https://www.irs.gov/newsroom/irs-begins-correcting-tax-returns-for-unemployment-compensation-income-exclusion-periodic-payments-to-be-made-may-through-summer

 

And see,

https://www.irs.gov/newsroom/irs-sending-more-than-2-point-8-million-refunds-to-those-who-already-paid-taxes-on-2020-unemployment-compensation

 

Do you need to amend your state return?

https://ttlc.intuit.com/community/state-taxes/help/do-i-need-to-amend-my-state-return/00/2134732

 

If you didn't file early your unemployment compensation will be on Schedule 1 line 7.  The exclusion will be on Schedule 1 Line 8 as a negative number. The result flows to Form 1040 Line 8.