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Is anyone having clients receiving refunds from IRS due to unemployment adjustments?

Level 3

Some clients are receiving refunds from the IRS due to the unemployment adjustment.  The problem is...when I prepared the returns before proseries got up to speed) I made the uce adjustment on line 21.  Now the IRS is making the adjustment again and sending refunds for an additional adjustment.  I don't know what to tell the client regarding the check they received due to the additional 10,400 adjustment.  Do we send them back with explanation?

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5 Replies 5
Level 15
Level 15

Ive seen this reported in other tax groups as well....IRS really dropped the ball on this one. I havent had any of me clients call me about this, but my advice to them when they do will be to hang onto the money, but don't be surprised if one of these days they ask for it back.


If youre in a Community Property state, and its a MFJ return, this could be for the additional exclusion for CP states.  PS should be making this adjustment automatically, so be sure to open the return and see if its still the same as when you filed.

Level 3

Now I have one where the program calculated the adjustment and the IRS sent the client a refund (even though at this point she had no taxable income) for the amount the adjustment would have made.  So again, they have calculated the exclusion twice.  2nd one on 0 income

Level 12

@tctxldy  thanks for sharing this information.  One more thing to be on the lookout for....sigh....


Level 5

A client called yesterday saying that they received a refund and it had a code on the bank statement. They did a Google search and it said that it was for unemployment.

Level 3

Yes, and they are not always correct.  I've had two already that should not have received any additional monies.

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