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Has anyone had the experience where your late filed return showed a DIFFERENT refund amount than what your tax software calculated? I'm worried that the IRS will recalculate and I'll end up getting less. Paper filed my 2021 return in October 2023 and still waiting...
I had this happen! Filed my 2020 return late (in 2022) and the software said I'd get back $1,273 but the actual refund was $1,029. Called IRS and apparently they adjusted some credit I claimed incorrectly. They sent a letter explaining the change but it arrived AFTER the refund, which was confusing.
I'm in almost the exact same boat! Filed my 2022 return in February 2024 via mail and have been anxiously waiting. Based on what everyone's saying here, it sounds like we're looking at a long wait unfortunately. One thing that's giving me some peace of mind is knowing there won't be penalties since we're getting refunds. I was really worried about that initially. And the interest payment is actually a nice bonus - 7% is better than most savings accounts right now! I've been checking the "Where's My Refund" tool obsessively but it still shows nothing after 2 months. Sounds like that's totally normal for paper returns though. Really wish I had just e-filed but I was being paranoid about security at the time. Thanks to everyone sharing their experiences - it's helping me set realistic expectations. Sounds like I should probably plan on waiting until at least summer/fall to see that money.
Has anyone successfully gotten their employer to reduce the withholding BEFORE paying the severance? I'm about to get laid off (they told us it's coming) and want to avoid this exact situation.
Yes! I negotiated this successfully during my layoff last year. Ask HR if you can complete a separate W-4 form specifically for the severance payment. On that form, you can claim exemption from withholding or claim a high number of allowances to reduce the amount withheld. They might push back a little since it creates extra work for them, but it's completely legal. I had them withhold only 15% instead of the nearly 40% they initially wanted to take.
The withholding on your severance is unfortunately very typical. I went through this exact same shock when I was laid off 6 months ago - $42k severance with over $18k withheld. What's happening is your payroll system is treating that lump sum as if it's your new regular pay rate, so it's withholding taxes as if you suddenly make $444k annually instead of your actual salary. Here's what I learned: most of that overwithholding WILL come back to you as a refund when you file taxes, assuming your total annual income doesn't actually put you in those higher brackets. In my case, I got back about $11,500 of the $18k they took. One immediate thing you can try - contact your former employer's payroll department and ask if they can process an amended W-4 for any remaining severance payments. Some companies will do this if you haven't received the full amount yet. Also keep very detailed records of everything because you'll need to track this carefully for your tax filing. The cash flow hit is brutal when you're already dealing with job loss stress, but the IRS math will work itself out in your favor come tax time.
Has anyone had success using the IRS online account to resolve these kinds of issues? I'm in a similar situation with duplicate notices but really don't want to call or mail anything if I can avoid it.
I tried using my IRS online account for a similar issue last year. It shows your notices but doesn't really have a way to resolve conflicts between them. Ended up having to call anyway.
Thanks for sharing your experience. That's disappointing but good to know before I waste time trying to fix it online. Looks like I'll have to bite the bullet and call them after all.
I've been through this exact same nightmare! Got stuck in the IRS notice loop for almost 6 months. Here's what finally worked for me: Don't ignore the duplicate notices - they can actually restart collection actions even if your case was previously closed. I made that mistake and ended up with a lien threat. Call the Practitioner Priority Service line at 866-860-4259 if you have a tax professional, or use the regular taxpayer line but ask to speak with someone in the "Correspondence Examination" department specifically. Tell them you have conflicting notices and need them to consolidate your case file. When you call, have these ready: - Your CP2005 closure notice - The most recent CP2501 - All your fax confirmation receipts - The weird form 202112 you mentioned Ask them to put a "case consolidation hold" on your account while they sort it out. This prevents any automated notices from going out while a human reviews your file. I also recommend requesting a "manual case review" - this forces an actual person to look at your timeline instead of letting the computer keep spitting out notices. The rep should be able to see all your submissions and confirm everything was properly processed. The whole thing took about 30 minutes on the phone once I got through to the right department. Haven't gotten a duplicate notice since!
How long has it been since you filed? Are you checking account daily? Did you have credits on your return? Need answers fast. Planning my budget around this.
I can relate to the anxiety of waiting! Filed 2 weeks ago and have been in the same boat - checking transcript multiple times daily with no updates. Based on what others are sharing here, it sounds like this timing mismatch happens more often than I thought. The key takeaway seems to be that IRS systems aren't always synchronized, so refunds can be processed and deposited before transcripts reflect the changes. Though Keisha's warning about potential adjustments is definitely something to keep in mind - might be worth keeping that refund money untouched for a few weeks just in case there are any corrections needed later.
Tom Maxon
To all those having trouble reaching a human at IRS. I just ran across this video that gave me a shortcut to reach a human. Hope it helps! https://youtu.be/_kiP6q8DX5c
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Sophia Nguyen
This message means the IRS has approved your refund but there's a that needs to be paid first - could be child support, state taxes, student loans, or other federal debts. The Bureau of Fiscal Service will automatically deduct what you owe from your refund and send you the remainder (if any). You'll receive a notice in the mail explaining exactly what was taken and the contact info for the agency you owed. The "Where's My Refund" tool will update with your final refund amount after the offset is processed. If you're not sure what this could be, you can call the Treasury Offset Program at 1-800-304-3107 to find out which agency is claiming the debt.
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