DEO unemployment benefits causing tax refund delays - anyone else waiting since March?

You're definitely not alone! I received DEO benefits for about 3 months last year and my refund was delayed for almost 10 weeks. The IRS has been flagging returns with unemployment benefits for additional review this year. When you filed, did you make sure to enter the withholding amount from Box 4 of your 1099-G? That's a common mistake people make, and it can trigger a manual review.

mine was late 2!!! i got benefits last yr and my refund took foreverrrrr. like 3 months to get it. irs said something about extra verification for fraud protection. its so annoying tho when u need the $$$

Tax professional here. This is actually quite common this year for returns with unemployment income. The IRS implemented enhanced verification processes for returns claiming unemployment compensation, especially from high-fraud states like Florida. What's likely happening is your return was flagged for identity verification. Here's what you can do: 1. Check your status on the IRS "Where's My Refund" tool. If it says "still processing" after 45+ days, that indicates a manual review. 2. You can try calling the IRS directly at 1-800-829-1040, but wait times are typically 2+ hours. 3. If you received a letter requesting identity verification, follow those instructions immediately. The good news is that you'll likely receive interest if your refund is delayed beyond 45 days from the filing deadline (not from when you submitted).

SAME EXACT ISSUE HERE! Filed Feb 28th, still "processing" with no explanation. Had about $8,200 in DEO benefits last year. I tried calling the IRS 6 DIFFERENT TIMES and either got disconnected or was on hold for over an hour before giving up. This is absolute GARBAGE! The DEO website was a nightmare to deal with and now the IRS is pulling the same nonsense. Anyone know if contacting our representatives helps at all?

my brother had same problem. he got florida unemployment and his tax return took like 9 weeks. irs is just slow this year especially with unemployment stuff

I worked as a tax preparer this season and I can confirm this is happening A LOT with unemployment recipients, especially from Florida DEO. The issue is that there's been significant fraud involving unemployment claims, so the IRS is scrutinizing these returns more carefully. One thing that might help: Check if you received any IRS letters with a reference number (usually CP07 or 4464C). Those indicate your return is being reviewed. If you did get one of these, there's usually nothing you need to do except wait. Also, double-check your transcript on IRS.gov (if you can access it) - sometimes it shows processing steps that the "Where's My Refund" tool doesn't reveal. Look for code 570 (additional account action pending) followed by 571 (resolved additional account action) - when you see the 571, that typically means your refund will be issued soon.

@OP - Now that you found that 4464C letter, you at least know it's being reviewed. That's actually good news because it means they haven't found anything specifically wrong yet. It's just in the manual review queue. If you received that notice on April 10, you'll probably see movement by early June. For anyone else dealing with this in the future: make sure you keep ALL documentation related to your unemployment. This includes not just the 1099-G, but any correspondence from DEO about changes to your benefits, extensions, or adjustments. Sometimes the 1099-G has errors, and having your payment history from the CONNECT portal can help resolve discrepancies faster if the IRS questions anything.

hey has neone tried using turbotax to check if they did it rite? my friend said u can go back in and look at ur old return 2 see if u missed anything

One final update that might help others: The IRS announced they're specifically taking longer with returns that include unemployment benefits because of potential tax credit implications. It doesn't necessarily mean you did anything wrong. For anyone receiving DEO benefits this year (2025), I strongly recommend having at least 10% withheld for federal taxes (you can set this in your CONNECT account under tax withholding preferences). This won't prevent the IRS scrutiny, but it will reduce the chance of owing taxes next year. Also, many people don't realize that unemployment benefits can affect other tax credits like the Earned Income Tax Credit. Sometimes the IRS delay is because they're recalculating these credits based on your unemployment income.