How do I deal with an erroneously large refund? Planned maintenance scheduled April 23, 2019 at 23:30 UTC (7:30pm US/Eastern) Announcing the arrival of Valued Associate #679: Cesar Manara Unicorn Meta Zoo #1: Why another podcast?H&R Block tax preparation software made arithmetic mistakes. How should I proceed?When does the IRS generally decide whether or not to audit your tax return?My company handed me a letter today telling me I owe them money because they overpaid me. What can I do about it?How can I set up a recurring payment to an individual (avoiding fees)?Lost job a week before closing with a mortgage. Options?Can I pay estimated taxes based on last year's taxes if I anticipate more income this year?Letter in mail about a foreclosed house I owned selling at auction and them trying to get the funds for meShould I file a change of address with the IRS?Credit card closed. Effect on credit score (USA)What are the repercussions of submitting an incorrect W-2 complaint with the IRS for a current employer
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How do I deal with an erroneously large refund?
Planned maintenance scheduled April 23, 2019 at 23:30 UTC (7:30pm US/Eastern)
Announcing the arrival of Valued Associate #679: Cesar Manara
Unicorn Meta Zoo #1: Why another podcast?H&R Block tax preparation software made arithmetic mistakes. How should I proceed?When does the IRS generally decide whether or not to audit your tax return?My company handed me a letter today telling me I owe them money because they overpaid me. What can I do about it?How can I set up a recurring payment to an individual (avoiding fees)?Lost job a week before closing with a mortgage. Options?Can I pay estimated taxes based on last year's taxes if I anticipate more income this year?Letter in mail about a foreclosed house I owned selling at auction and them trying to get the funds for meShould I file a change of address with the IRS?Credit card closed. Effect on credit score (USA)What are the repercussions of submitting an incorrect W-2 complaint with the IRS for a current employer
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Alright, it's a weird complaint, I know. But I just checked on the status of my refund and it has corrected upward the refund I filed for by a lot. Based on the correction note (relating to the "calculation of net profit or loss" on Schedule C) and the amount, it looks like they took all of the income from my freelancing and straight up zeroed it out for some reason, so I'm paying $0 tax on everything but my main job.
I'm a little worried about receiving the direct deposit in a week and then having to both return the money and pay a fee. I've been trying to call the IRS but their lines are jammed, naturally.
What should I do at this point? I figure this will get sorted out eventually, but how worried do I have to be about getting it solved immediately? Or if I wait until their lines are clear (by which point I've probably received the money, and it's set up for direct deposit so it won't be a check I can just not deposit) is that likely to be okay?
united-states income-tax irs
asked 4 hours ago
NickCHKNickCHK
755
add a comment |
Alright, it's a weird complaint, I know. But I just checked on the status of my refund and it has corrected upward the refund I filed for by a lot. Based on the correction note (relating to the "calculation of net profit or loss" on Schedule C) and the amount, it looks like they took all of the income from my freelancing and straight up zeroed it out for some reason, so I'm paying $0 tax on everything but my main job.
I'm a little worried about receiving the direct deposit in a week and then having to both return the money and pay a fee. I've been trying to call the IRS but their lines are jammed, naturally.
What should I do at this point? I figure this will get sorted out eventually, but how worried do I have to be about getting it solved immediately? Or if I wait until their lines are clear (by which point I've probably received the money, and it's set up for direct deposit so it won't be a check I can just not deposit) is that likely to be okay?
united-states income-tax irs
asked 4 hours ago
NickCHKNickCHK
755
Are you certain they've made a mistake? Was the Schedule C income that you recorded reported on a 1099, and if so, which boxes were populated?
– Hart CO
4 hours ago
5
Can you clarify the identity of "they" and "it" that changed the return amount? And how you were notified of the correction? In the past I've had the IRS once decide they owed me extra money, and they sent me multiple letters first to ask for clarifications and inform me of the change before they sent the money; never had them do it all at the same time as a return. But in general if this was something the IRS decided to do you don't have to worry about trying to stop them from depositing the money, just don't spend the excess until you've figured the situation out fully.
– BrianH
4 hours ago
I'm fairly certain that it's a mistake, as the amount of the correction suggests that they're not counting any of my freelance income as income. And "they" is the IRS - I checked the Status of My Refund website and that's how I found out about the change. Edit: most of it came in 1099s, but some didn't and I just volunteered the information. I'll have to check back on which boxes were filled.
– NickCHK
3 hours ago
@NickCHK thanks for the clarification, but it would also be very helpful if you were to edit the question as well as that would leave no room for misunderstanding who you mean.
– Captain Man
32 mins ago
add a comment |
Alright, it's a weird complaint, I know. But I just checked on the status of my refund and it has corrected upward the refund I filed for by a lot. Based on the correction note (relating to the "calculation of net profit or loss" on Schedule C) and the amount, it looks like they took all of the income from my freelancing and straight up zeroed it out for some reason, so I'm paying $0 tax on everything but my main job.
I'm a little worried about receiving the direct deposit in a week and then having to both return the money and pay a fee. I've been trying to call the IRS but their lines are jammed, naturally.
What should I do at this point? I figure this will get sorted out eventually, but how worried do I have to be about getting it solved immediately? Or if I wait until their lines are clear (by which point I've probably received the money, and it's set up for direct deposit so it won't be a check I can just not deposit) is that likely to be okay?
united-states income-tax irs
asked 4 hours ago
NickCHKNickCHK
755
Alright, it's a weird complaint, I know. But I just checked on the status of my refund and it has corrected upward the refund I filed for by a lot. Based on the correction note (relating to the "calculation of net profit or loss" on Schedule C) and the amount, it looks like they took all of the income from my freelancing and straight up zeroed it out for some reason, so I'm paying $0 tax on everything but my main job.
I'm a little worried about receiving the direct deposit in a week and then having to both return the money and pay a fee. I've been trying to call the IRS but their lines are jammed, naturally.
What should I do at this point? I figure this will get sorted out eventually, but how worried do I have to be about getting it solved immediately? Or if I wait until their lines are clear (by which point I've probably received the money, and it's set up for direct deposit so it won't be a check I can just not deposit) is that likely to be okay?
united-states income-tax irs
united-states income-tax irs
asked 4 hours ago
NickCHKNickCHK
755
asked 4 hours ago
NickCHKNickCHK
755
asked 4 hours ago
NickCHKNickCHK
755
asked 4 hours ago
NickCHKNickCHK
755
asked 4 hours ago
NickCHKNickCHK
755
755
Are you certain they've made a mistake? Was the Schedule C income that you recorded reported on a 1099, and if so, which boxes were populated?
– Hart CO
4 hours ago
5
Can you clarify the identity of "they" and "it" that changed the return amount? And how you were notified of the correction? In the past I've had the IRS once decide they owed me extra money, and they sent me multiple letters first to ask for clarifications and inform me of the change before they sent the money; never had them do it all at the same time as a return. But in general if this was something the IRS decided to do you don't have to worry about trying to stop them from depositing the money, just don't spend the excess until you've figured the situation out fully.
– BrianH
4 hours ago
I'm fairly certain that it's a mistake, as the amount of the correction suggests that they're not counting any of my freelance income as income. And "they" is the IRS - I checked the Status of My Refund website and that's how I found out about the change. Edit: most of it came in 1099s, but some didn't and I just volunteered the information. I'll have to check back on which boxes were filled.
– NickCHK
3 hours ago
@NickCHK thanks for the clarification, but it would also be very helpful if you were to edit the question as well as that would leave no room for misunderstanding who you mean.
– Captain Man
32 mins ago
add a comment |
Are you certain they've made a mistake? Was the Schedule C income that you recorded reported on a 1099, and if so, which boxes were populated?
– Hart CO
4 hours ago
5
Can you clarify the identity of "they" and "it" that changed the return amount? And how you were notified of the correction? In the past I've had the IRS once decide they owed me extra money, and they sent me multiple letters first to ask for clarifications and inform me of the change before they sent the money; never had them do it all at the same time as a return. But in general if this was something the IRS decided to do you don't have to worry about trying to stop them from depositing the money, just don't spend the excess until you've figured the situation out fully.
– BrianH
4 hours ago
I'm fairly certain that it's a mistake, as the amount of the correction suggests that they're not counting any of my freelance income as income. And "they" is the IRS - I checked the Status of My Refund website and that's how I found out about the change. Edit: most of it came in 1099s, but some didn't and I just volunteered the information. I'll have to check back on which boxes were filled.
– NickCHK
3 hours ago
@NickCHK thanks for the clarification, but it would also be very helpful if you were to edit the question as well as that would leave no room for misunderstanding who you mean.
– Captain Man
32 mins ago
Are you certain they've made a mistake? Was the Schedule C income that you recorded reported on a 1099, and if so, which boxes were populated?
– Hart CO
4 hours ago
Are you certain they've made a mistake? Was the Schedule C income that you recorded reported on a 1099, and if so, which boxes were populated?
– Hart CO
4 hours ago
5
5
Can you clarify the identity of "they" and "it" that changed the return amount? And how you were notified of the correction? In the past I've had the IRS once decide they owed me extra money, and they sent me multiple letters first to ask for clarifications and inform me of the change before they sent the money; never had them do it all at the same time as a return. But in general if this was something the IRS decided to do you don't have to worry about trying to stop them from depositing the money, just don't spend the excess until you've figured the situation out fully.
– BrianH
4 hours ago
Can you clarify the identity of "they" and "it" that changed the return amount? And how you were notified of the correction? In the past I've had the IRS once decide they owed me extra money, and they sent me multiple letters first to ask for clarifications and inform me of the change before they sent the money; never had them do it all at the same time as a return. But in general if this was something the IRS decided to do you don't have to worry about trying to stop them from depositing the money, just don't spend the excess until you've figured the situation out fully.
– BrianH
4 hours ago
I'm fairly certain that it's a mistake, as the amount of the correction suggests that they're not counting any of my freelance income as income. And "they" is the IRS - I checked the Status of My Refund website and that's how I found out about the change. Edit: most of it came in 1099s, but some didn't and I just volunteered the information. I'll have to check back on which boxes were filled.
– NickCHK
3 hours ago
I'm fairly certain that it's a mistake, as the amount of the correction suggests that they're not counting any of my freelance income as income. And "they" is the IRS - I checked the Status of My Refund website and that's how I found out about the change. Edit: most of it came in 1099s, but some didn't and I just volunteered the information. I'll have to check back on which boxes were filled.
– NickCHK
3 hours ago
@NickCHK thanks for the clarification, but it would also be very helpful if you were to edit the question as well as that would leave no room for misunderstanding who you mean.
– Captain Man
32 mins ago
@NickCHK thanks for the clarification, but it would also be very helpful if you were to edit the question as well as that would leave no room for misunderstanding who you mean.
– Captain Man
32 mins ago
add a comment |
1 Answer
1
active
oldest
votes
According to "Tax Topic 152: Refund Information",
Not Entitled to Refund Received
If you receive a refund to which you're not entitled, or for an amount that's more than you expected, don't cash the check until you receive a notice that explains the difference; then follow the instructions on the notice. For a direct deposit that was greater than expected, review the notice to determine if the difference was correct, and follow the instructions on the notice. For information about returning an erroneous refund, see Topic No. 161.
So, at some point (and it's not clear from your question whether this has happened for you or not), you should receive a notice in the mail describing the changes they've made. That notice should include some sort of instructions for what you should do if you disagree with their changes. Those instructions might involve calling them, which yes might take a while.
Obviously don't spend the money until you're sure that you're supposed to get it.
answered 3 hours ago
Peter Cooper Jr.Peter Cooper Jr.
3,7711036
They said that they're sending a notice of changes, but it should come at about the same time that the money itself is. I'll make sure to tuck the money away and not spend it until everything is ironed out. Thank you!
– NickCHK
3 hours ago
4
Tuck it away in a savings account! Not necessarily to earn interest (especially at today's interest rate on savings), but to help avoid thinking you have more money in your checking account than you can really use....
– Mark Stewart
3 hours ago
add a comment |
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1 Answer
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1 Answer
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oldest
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oldest
votes
According to "Tax Topic 152: Refund Information",
Not Entitled to Refund Received
If you receive a refund to which you're not entitled, or for an amount that's more than you expected, don't cash the check until you receive a notice that explains the difference; then follow the instructions on the notice. For a direct deposit that was greater than expected, review the notice to determine if the difference was correct, and follow the instructions on the notice. For information about returning an erroneous refund, see Topic No. 161.
So, at some point (and it's not clear from your question whether this has happened for you or not), you should receive a notice in the mail describing the changes they've made. That notice should include some sort of instructions for what you should do if you disagree with their changes. Those instructions might involve calling them, which yes might take a while.
Obviously don't spend the money until you're sure that you're supposed to get it.
answered 3 hours ago
Peter Cooper Jr.Peter Cooper Jr.
3,7711036
They said that they're sending a notice of changes, but it should come at about the same time that the money itself is. I'll make sure to tuck the money away and not spend it until everything is ironed out. Thank you!
– NickCHK
3 hours ago
4
Tuck it away in a savings account! Not necessarily to earn interest (especially at today's interest rate on savings), but to help avoid thinking you have more money in your checking account than you can really use....
– Mark Stewart
3 hours ago
add a comment |
According to "Tax Topic 152: Refund Information",
Not Entitled to Refund Received
If you receive a refund to which you're not entitled, or for an amount that's more than you expected, don't cash the check until you receive a notice that explains the difference; then follow the instructions on the notice. For a direct deposit that was greater than expected, review the notice to determine if the difference was correct, and follow the instructions on the notice. For information about returning an erroneous refund, see Topic No. 161.
So, at some point (and it's not clear from your question whether this has happened for you or not), you should receive a notice in the mail describing the changes they've made. That notice should include some sort of instructions for what you should do if you disagree with their changes. Those instructions might involve calling them, which yes might take a while.
Obviously don't spend the money until you're sure that you're supposed to get it.
answered 3 hours ago
Peter Cooper Jr.Peter Cooper Jr.
3,7711036
They said that they're sending a notice of changes, but it should come at about the same time that the money itself is. I'll make sure to tuck the money away and not spend it until everything is ironed out. Thank you!
– NickCHK
3 hours ago
4
Tuck it away in a savings account! Not necessarily to earn interest (especially at today's interest rate on savings), but to help avoid thinking you have more money in your checking account than you can really use....
– Mark Stewart
3 hours ago
add a comment |
According to "Tax Topic 152: Refund Information",
Not Entitled to Refund Received
If you receive a refund to which you're not entitled, or for an amount that's more than you expected, don't cash the check until you receive a notice that explains the difference; then follow the instructions on the notice. For a direct deposit that was greater than expected, review the notice to determine if the difference was correct, and follow the instructions on the notice. For information about returning an erroneous refund, see Topic No. 161.
So, at some point (and it's not clear from your question whether this has happened for you or not), you should receive a notice in the mail describing the changes they've made. That notice should include some sort of instructions for what you should do if you disagree with their changes. Those instructions might involve calling them, which yes might take a while.
Obviously don't spend the money until you're sure that you're supposed to get it.
answered 3 hours ago
Peter Cooper Jr.Peter Cooper Jr.
3,7711036
According to "Tax Topic 152: Refund Information",
Not Entitled to Refund Received
If you receive a refund to which you're not entitled, or for an amount that's more than you expected, don't cash the check until you receive a notice that explains the difference; then follow the instructions on the notice. For a direct deposit that was greater than expected, review the notice to determine if the difference was correct, and follow the instructions on the notice. For information about returning an erroneous refund, see Topic No. 161.
So, at some point (and it's not clear from your question whether this has happened for you or not), you should receive a notice in the mail describing the changes they've made. That notice should include some sort of instructions for what you should do if you disagree with their changes. Those instructions might involve calling them, which yes might take a while.
Obviously don't spend the money until you're sure that you're supposed to get it.
answered 3 hours ago
Peter Cooper Jr.Peter Cooper Jr.
3,7711036
answered 3 hours ago
Peter Cooper Jr.Peter Cooper Jr.
3,7711036
answered 3 hours ago
Peter Cooper Jr.Peter Cooper Jr.
3,7711036
answered 3 hours ago
Peter Cooper Jr.Peter Cooper Jr.
3,7711036
3,7711036
They said that they're sending a notice of changes, but it should come at about the same time that the money itself is. I'll make sure to tuck the money away and not spend it until everything is ironed out. Thank you!
– NickCHK
3 hours ago
4
Tuck it away in a savings account! Not necessarily to earn interest (especially at today's interest rate on savings), but to help avoid thinking you have more money in your checking account than you can really use....
– Mark Stewart
3 hours ago
add a comment |
They said that they're sending a notice of changes, but it should come at about the same time that the money itself is. I'll make sure to tuck the money away and not spend it until everything is ironed out. Thank you!
– NickCHK
3 hours ago
4
Tuck it away in a savings account! Not necessarily to earn interest (especially at today's interest rate on savings), but to help avoid thinking you have more money in your checking account than you can really use....
– Mark Stewart
3 hours ago
They said that they're sending a notice of changes, but it should come at about the same time that the money itself is. I'll make sure to tuck the money away and not spend it until everything is ironed out. Thank you!
– NickCHK
3 hours ago
They said that they're sending a notice of changes, but it should come at about the same time that the money itself is. I'll make sure to tuck the money away and not spend it until everything is ironed out. Thank you!
– NickCHK
3 hours ago
4
4
Tuck it away in a savings account! Not necessarily to earn interest (especially at today's interest rate on savings), but to help avoid thinking you have more money in your checking account than you can really use....
– Mark Stewart
3 hours ago
Tuck it away in a savings account! Not necessarily to earn interest (especially at today's interest rate on savings), but to help avoid thinking you have more money in your checking account than you can really use....
– Mark Stewart
3 hours ago
add a comment |
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Are you certain they've made a mistake? Was the Schedule C income that you recorded reported on a 1099, and if so, which boxes were populated?
– Hart CO
4 hours ago
5
Can you clarify the identity of "they" and "it" that changed the return amount? And how you were notified of the correction? In the past I've had the IRS once decide they owed me extra money, and they sent me multiple letters first to ask for clarifications and inform me of the change before they sent the money; never had them do it all at the same time as a return. But in general if this was something the IRS decided to do you don't have to worry about trying to stop them from depositing the money, just don't spend the excess until you've figured the situation out fully.
– BrianH
4 hours ago
I'm fairly certain that it's a mistake, as the amount of the correction suggests that they're not counting any of my freelance income as income. And "they" is the IRS - I checked the Status of My Refund website and that's how I found out about the change. Edit: most of it came in 1099s, but some didn't and I just volunteered the information. I'll have to check back on which boxes were filled.
– NickCHK
3 hours ago
@NickCHK thanks for the clarification, but it would also be very helpful if you were to edit the question as well as that would leave no room for misunderstanding who you mean.
– Captain Man
32 mins ago