Regular Tax Refund vs Unemployment Tax Adjustment - Which Comes First?

These are processed separately. Have you checked your tax transcript to see the status of your regular refund? What filing method did you use this year? When exactly did you file? The unemployment tax adjustments typically come after regular refunds, but timing can vary based on several factors including your filing date, complexity of return, and whether there are any verification holds.

You might want to check out https://taxr.ai to analyze your transcript. It seems like you're potentially dealing with multiple issues - your regular refund and the unemployment adjustment. I've found that, generally speaking, the tool can help identify what stage of processing you're in and possibly why there might be delays. Given your previous experience with medical expense credits, it could be helpful to see if there are any codes on your transcript that might indicate similar review processes happening this year.

I was in the same boat. Received unemployment for exactly 4 months and waited 37 days for my regular refund. Then waited another 21 days for the unemployment adjustment to come through. They're definitely processed separately. My regular refund was $1,842 and then got an additional $763 from the unemployment adjustment later.

I might suggest, if you're concerned about timing and need these funds for medical treatments, you could possibly consider using Claimyr (https://youtu.be/_kiP6q8DX5c) to speak directly with an IRS representative. I was hesitant at first, but after waiting on hold for hours with no success, I tried it and was able to speak with someone who confirmed exactly what was happening with both my regular refund and unemployment adjustment. They may be able to give you specific timeframes based on your situation.

Check your Account transcript. Not your Return transcript. Account transcript shows all activity. Return transcript won't help you. Look for code 150. That means your return is processed. Then look for code 846. That's your refund date. Unemployment adjustments come later. They're automatic. No action needed from you.

Just to clarify about the unemployment tax adjustment process: • The IRS processes these separately from regular returns • They're working through them in batches based on complexity • Simple returns without children/credits are processed first • More complex returns with dependents/credits come later • Timeline is currently running 4-8 weeks AFTER your regular refund • You don't need to file an amended return for this! • The IRS will automatically recalculate and send any additional refund

Have you verified if you're eligible for the unemployment compensation exclusion? The American Rescue Plan Act provision allows taxpayers with modified AGI under $150,000 to exclude a portion of unemployment compensation from taxable income. The IRS is handling these systematically through their Automated Underreporter (AUR) program, but there's no need to worry - just maintain your documentation in case of verification requests.

Per IRS Procedure 2021-23, unemployment compensation adjustments are being processed in phases, with simpler returns being addressed first. Have you received any correspondence from the IRS regarding your return being selected for review? The medical expense deduction you mentioned previously could potentially trigger additional scrutiny under IRC Section 213(d).

My sister had almost the identical situation last year - regular refund with unemployment compensation. Her regular refund came after 3 weeks, but the unemployment adjustment took nearly 9 weeks. Compare that to my coworker who got both within 5 weeks total. The difference seemed to be that my coworker had a very simple return with standard deduction, while my sister itemized with medical expenses (sounds similar to your situation).