I filed my taxed in February and needed to review a figure on March 31st, the federal and state refund boxes are showing larger values. These values changed after an update was applied but without me making any changes to the file, thoughts? Suggestions?
Did you receive unemployment?
TurboTax updated its programs after President Joe Biden signed the American Rescue Plan into law on March 11. The law exempts the first $10,200 of unemployment for filers with incomes of less than $150,000.
The IRS will automatically refund the difference.
For those taxpayers who already have filed and figured their tax based on the full amount of unemployment compensation, the IRS will determine the correct taxable amount of unemployment compensation and tax. Any resulting overpayment of tax will be either refunded or applied to other outstanding taxes owed.
For those who have already filed, the IRS will do these recalculations in two phases, starting with those taxpayers eligible for the up to $10,200 exclusion. The IRS will then adjust returns for those married filing jointly taxpayers who are eligible for the up to $20,400 exclusion and others with more complex returns.
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.
Could this be why my return has showed " Your tax return is still being processed", and it has been almost 6 weeks since it was accepted. New amount in Turbotax is nearly double, and I did receive unemployment compensation in 2020. I take it I do not need to refile and amended return, but that the IRS will compute and return the higher amount? Is that what I am reading here?
I have a similar situation. I submitted my taxes 2 weeks ago and then when I was doing my sister's taxes last week there was an update and I was curious so I opened my return and turbotax calculated $204 higher refund for me with no changes made. I received my refund from the IRS today and it was adjusted but only $19.19 higher not the $204 amount turbtax is showing. Do I need to do an amendment?
I am hearing that since I received unemployment compensation in 2020, that a change in federal tax rules in March reduced the taxable portion, and that this was the reason for the 1) $ 1200 increase in refund due (after updating Turbo tax), and 2) the delay in processing. I get all that, but I filed electronically with Turbo Tax in Feb., and my return was accepted, and it is now June, and it is still being processed, according to irs,gov/returns. How long have others had to wait? I guess my recourse now is to call the IRS (ugh) and try to find out how long it will take. A little interest on the money would be nice for the 4 month delay