Tax Refund Questions

[Ghost-Tax]

Few people with Schedule Cs complain that they received a smaller refund amount that the amount showed on their tax returns.

Anybody else experiencing this?

Is there a glitch with proseries, or am I doing something wrong?

This is the first time in years that people called me about this issue.

[abctax55]

Did these folks also have EIP/RRC on the returns?  

[Just-Lisa-Now- · Accepted solution]

Did you choose to defer the SE taxes?   If they had a refund that wasn't an option, so those deferred taxes reduced the refund.

Look on Sch 3, Part II, Line 12e   is that the amount that their refund was reduced by?

[Ghost-Tax]

No, they did not. They have already received those prior.

[abctax55]

 Ah...good guess as Sch C was mentioned.

[qbteachmt]

Did you try to defer some SE? If they already had a paid in balance (were owed a refund), there is no deferral of SE, since it was considered already paid in.

The IRS has refund resources:

https://www.irs.gov/pub/irs-pdf/p2043.pdf

https://www.irs.gov/refunds/what-to-expect-for-refunds-this-year

https://www.irs.gov/taxtopics/tc152

https://www.taxact.com/support/770/2020/causes-for-delays-in-refunds-from-the-irs?hideLayout=False

https://www.investopedia.com/taxes/7-reasons-why-you-havent-received-your-tax-refund/

[Ghost-Tax]

I was thinking about that but one did and the other didn't, so I don't know exactly if that's what is causing it; it might be.

[PATAX]

• Ghost tax, I have not experienced this issue at all... I doubt if it is a pro series software issue... It could be something unique to the client, ie maybe they owe money via a lien or something similar and the IRS reduced their refund for this... Hard to tell .. It could also maybe have something to do with the economic impact payments calculation...Just my opinion

[Ghost-Tax]

Thank you, I think that this might be it and possibly something also that might have to do with unemployment compensation received for self-employed during the pandemic period.