Why is my Fed tax refund larger than TurboTax computed?

[ngpatrick99]

Filed 2022 Fed tax before April 18 & received refund early May but Fed refund was about $10 more than Turbo Tax computed.  As of now, why have I not received any IRS letter, explaining why I got a bigger refund???  (I live in CA disaster area & Fed extended filing deadline to Oct 2023 but I was ready to use Turbo Tax to file before April 18, 2023.)

[VolvoGirl]

Did you have an amount on 1040 line 38 for a penalty (even if you are getting refund you can have a penalty).   Or they may have paid you interest.   

[ngpatrick99]

To answer your question, my 1040 line 38 for a penalty was blank (I did not owe any penalty).

I usually get Fed refund every yr because I deliberately choose to overpay tax payment every yr so that I dont owe tax & dont pay penalty for underpayment.

For your info, I used Turbo Tax for over 10 yrs &, before I used Turbo Tax, I did my own tax.  It has NEVER happened to me in my entire life that IRS refunded more than Turbo Tax (& also before I used Turbo Tax) computed.  

As I stated in my original post, my 2022 tax return deadline is Oct 2023 because I live in CA disaster area.  But I filed my tax before April 18 because I was ready to file.  The IRS refund was $10 (plus some cents).  If it were interest, I still would expect an IRS letter in the mail, explaining it is interest or for whatever reason.  So far, I waited for over 3 months, still no letter from IRS.  I need to know how to handle this "$10, plus some cents" when I file 2023 tax by April 15, 2024!!!

Thank you for your reply.

[dmertz]

You can obtain a transcript of your tax return which will likely show the difference between what the IRS calculated and what TurboTax calculated.  Compare the items that you reported with the "PER COMPUTER" items with the same name that immediately follow; "PER COMPUTER" items are the results of the calculations done by the IRS.

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

Note that the IRS sometimes rounds differently than does TurboTax and even a $1 difference can sometimes move you to an adjacent line in the tax table.  Moving one line lower in the tax table could explain the $10 difference.

[NCperson]

the extra has to be interest.  The IRS only pays refunds in whole dollar amounts so if you received something with cents, that means they added interest.

as others have suggested, suggest reviewing your transcript. 

[ngpatrick99]

dmerty,

I file tax returns for yrs  & yrs.  Up till this yr (2022 tax return), IRS always refunded the identical TurboTax refund amount.  So I never have the need to create an IRS online account.  Hey, one less ID & one less password for me to keep track & one less chance for hacker to break into account.

Per your reply, I will create an IRS online account & request a tax transcript.  Thx again!

[ngpatrick99]

NCperson,

I tend to agree with you that $10.15 added to the Turbo Tax computed refund might be interests.  Never happened to me in my entire life.  After waiting for over 3 months, I would still expect IRS to mail me a letter explaining why!!!

Anyhow, I will request tax transcript.

And, because $10.15 is over $10 interest limit, I will assume IRS will send me a 1099 interest form in January 2024 so that I can report it in Turbo Tax.  

Thx again.

[NCperson]

@ngpatrick99 - you can get the transcript here: 

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

and yes, the IRS does send out 1099-INT forms 

the IRS is required to pay interest if your return is held for more than 45 days and owed a refund 

[ngpatrick99]

NCperson, 

TT filed my return on 4/18/23 (tax filing deadline is 10/2023, not 4/18/23, because I live in CA disaster area due to flood & storm) & IRS issued refund on 5/5/23 which was less than 45 days.

IRS has not sent me an explanation letter in the mail or email or phone call (I provided my email id & phone # in my TT return every yr).  So the only way I can find out why is to get a tax transcript - what a pain.  Thx again!

[Critter-3]

Since the refund was more than expected stop worrying about it ... next Jan when you get the IRS interest notice for your tax return just enter that figure appropriately.  

[ngpatrick99]

Critter-3,

Thx for reply.  If it is interest, I will wait for IRS 1099-Int form next January.  If it is not & I dont get 1099, then I feel it is better to find out "why/reason" now so that it doesnt hold me up next March/Apr when I do & file my tax.  I will get tax transcript to trace out "why/reason".  Thx again.

[Critter-3]

99.99% chance it is simply interest added ... but as others have posted you can find this info by accessing your account transcript online ...  https://www.irs.gov/individuals/get-transcript