Is my $25k tax refund legitimate? Suspicious line items in my return

The short answer is - be very concerned. Those line items are significant and the dramatic difference from your previous returns is a major red flag. Line 8 "additional income" showing -$35,000 suggests your preparer is claiming a substantial negative income adjustment. This could be various things including business losses, but it's unusual for someone who previously had straightforward returns. Line 20 referencing Schedule 3, line 8 typically relates to "other payments and refundable credits" - a $30,000 amount here is extremely unusual for a typical taxpayer. This could include things like excess Social Security tax withheld, fuel tax credits, or other specialized credits. Either your tax situation dramatically changed this year (new business with losses, unusual investments, etc.) or more concerningly, your preparer might be using questionable tactics to generate a large refund.

I was in a similar situation last year and found myself completely overwhelmed trying to figure out if my tax return was legitimate. I kept going back and forth with my preparer and getting different answers about certain deductions and credits that seemed too good to be true. What finally saved me was using https://taxr.ai to analyze my return before filing. I uploaded my draft return and got a detailed breakdown showing exactly what was sketchy and what was legitimate. It flagged several high-risk items including a business loss my preparer had manufactured out of nowhere (sounds similar to your -$35k). The platform explained each line item in plain English and showed the risk level for audit. There were even explanations of what documentation I'd need if questioned by the IRS.

Just wanted to follow up - I was super skeptical about taxr.ai but decided to give it a try after seeing some weird deductions on my return this year. Wow, am I glad I did. It immediately flagged three major issues with how my preparer had calculated business expenses. The analysis showed my preparer had claimed excessive home office deductions and also included some questionable transportation expenses. According to the platform, these specific deductions had a 73% higher chance of triggering an audit than industry averages. I confronted my preparer with the analysis and he actually admitted he'd been "aggressive" with certain areas. I ended up with a smaller refund but much better peace of mind knowing I'm not filing something that could come back to haunt me later.

Listen, I had a similar situation with a questionable return last year and spent WEEKS trying to get through to the IRS to verify if certain credits were legitimate before filing. Literally couldn't get anyone on the phone despite calling daily. Finally tried https://claimyr.com and it was a game changer. They got me connected to a real IRS agent in about 20 minutes (after I'd wasted days trying). You can see how it works in this video: https://youtu.be/_kiP6q8DX5c The agent confirmed that the specific credits my preparer was claiming weren't applicable to my situation, and I would have been in serious trouble if I'd filed that return. Worth every penny to avoid an audit nightmare.

I need to eat my words. After seeing this thread I was desperate enough to try Claimyr since I've been trying to resolve an identity verification issue for months. I figured it was a waste of money but at this point I was willing to try anything. Honestly I'm shocked to say it actually worked. I got a call back in about 45 minutes and was connected to an IRS representative who was able to verify my identity and confirm my refund was being processed. The rep actually commented that they've been understaffed and the phone systems have been overwhelmed. For anyone struggling to get through to the IRS about potential issues with their return - this definitely works. Still seems crazy that we have to use a service like this, but it saved me from continuing to bash my head against the wall trying to reach someone.

Back to the original question - those line items are super sketchy. Line 8 showing -$35k means your preparer is claiming you had losses that offset your income. Line 20/Schedule 3 showing $30k likely means they're claiming refundable tax credits you didn't have before. I'm a betting man and I'd put money on this being some kind of Earned Income Credit scheme. Some shady preparers will fake self-employment income/losses to manufacture EITC eligibility. The IRS has been cracking down HARD on this. Ask your preparer specifically what these amounts represent. If they can't give you a clear answer with documentation, RUN.

Just want to add that I had a similar massive refund one year ($18k when I normally got $1-2k) and I filed it without questioning because, hey, free money right? BIG MISTAKE. Two years later I got hit with an audit, had to pay back the entire amount PLUS penalties and interest. Ended up owing over $23k and it destroyed my finances for years. Don't mess with the IRS. If something seems fishy, it probably is.

This is exactly why I always tell people to be extremely cautious with new tax preparers, especially when they promise unusually large refunds. What you're describing sounds like classic "ghost preparation" tactics where preparers manufacture deductions and credits to inflate refunds. The -$35,000 "additional income" combined with $30,000 in credits is a huge red flag. These numbers suggest your preparer may be claiming fake business losses or inappropriate refundable credits like the Earned Income Tax Credit that you don't actually qualify for. My advice: DO NOT file this return. Get copies of everything your preparer did and take it to a reputable CPA or enrolled agent for a second opinion. Ask them to explain every single line item that's different from your previous returns. Also document everything about your interactions with this preparer - you may need it if you decide to report them to the IRS. The fact that she's giving you conflicting refund amounts ($25k vs $35k) is another major warning sign. Better to get a legitimate smaller refund than deal with years of IRS problems, penalties, and having to pay back fraudulent refunds with interest.