IRS is giving me more than what my return shows?

[ruoxuan-zhu]

I filed my 2022 return recently due to being a federal declared emergency area (it was due like 2 weeks ago). 

The return says I'm owed $1,780 (due to unexpected losses in 2022, usually I owe the IRS a couple of thousand). But the IRS tracking site says $2,235.20 will be refunded. Why would it go up? I've only seen it go down from other people's posts...

[Bsch4477]

You should get a letter from the IRS explaining the changes. 

[VolvoGirl · Accepted solution]

They will mail you a letter in a couple weeks. Some things to check.

They may have paid you interest. If they paid you interest on your refund it will be taxable next year. So don't forget to enter the interest next year.

They may have reduced a penalty on 1040 line 38. That is just an estimated amount. It's common for the IRS to adjust it and send you a refund or a bill for more. And they might pay you interest on a refund. So you will need to remember to enter the interest on next year's return.

You may have entered some withholding wrong or missed entering an estimated payment or extension payment or entered it on the wrong line so the IRS thinks you missed reporting it.