IRS Transcript Shows $926 Tax Reduction (Code 291) After Unemployment Tax - Should I Expect a Refund?

Yes, that's exactly what it means! I had the same thing happen after they adjusted the unemployment tax stuff from last year. Mine showed up as a negative amount and about 3 weeks later I got a deposit from the IRS. They didn't really explain it well but it's definitely a refund coming your way.

After trying to call the IRS for days with no luck, I found this website called claimyr.com and it was a game changer! Got connected to an actual human at the IRS who confirmed that the negative amount means they're refunding me what I overpaid. Talking to an agent got my $ unlocked so fast instead of waiting around guessing. Here's a video explaining how it works: https://youtu.be/Rdqa1gKtxuE

This is from the unemployment tax adjustment that Biden signed into law. If you paid taxes on unemployment benefits, they're giving some of it back. I got about $880 back in September. The negative amount is them removing that tax you already paid.

I was in the exact same situation and yes, you ARE getting that money back! I had my transcript show a negative amount like that and two weeks later, deposit hit my account. The system is automatically adjusting returns for people who paid taxes on unemployment before the law changed.

This is 100% a refund. The IRS is working through millions of these adjustments. Code 971 is just them sending you a notice about it. Code 291 is them reducing your tax liability by that amount. Basically saying "oops we charged you $1092 too much, here it is back

Um is anyone else stuck on the weird 201912 code in this persons transcript? That indicates tax year 2019 but they're talking about unemployment from last year. Something seems off here...

I just want to add some actual facts here. The American Rescue Plan Act of 2021 made the first $10,200 of unemployment benefits tax-free for people with incomes under $150k. If you filed your taxes before this passed, the IRS is automatically adjusting returns and sending refunds. That negative amount is 100% a refund coming your way. The IRS is processing these in batches so some people got them months ago and others are still waiting.

I've been dealing with NY unemployment issues for over 2 years now and the one thing I've learned is CALL THEM about everything because their online system is a joke. I had the same tax situation and waited 4 months hoping for a refund that never came. Finally called using claimyr.com (because getting through normally is impossible) and found out there was a small issue they needed to fix. Got my refund 2 weeks later.

im so confused about all this tax stuff with unemployment. like i got benefits from ny unemployment in 2020 and paid taxes on them but i haven't received any refund or seen anything on my transcript. do i need to amend my return or are they supposed to do it automatically?

Almost the exact same situation here, but my refund still hasn't hit my bank account even though the transcript shows the adjustment from 2 months ago! 😡 NY unemployment AND the IRS are both complete disasters. I've spent so many hours trying to get answers with no luck.

YO LISTEN UP EVERYONE. I work as a tax preparer and deal with this every day. Here's the COMPLETE explanation: - The American Rescue Plan exempted up to $10,200 of unemployment benefits from taxes for 2020 (filed in 2021) - If you filed your taxes BEFORE this law passed, you paid taxes on all your unemployment - The IRS is AUTOMATICALLY recalculating and refunding the difference - Code 291 on your transcript means they adjusted your tax liability downward - The negative number is the amount of your refund - You'll get either a direct deposit or check depending on how you originally filed - Timing varies widely - some got refunds in May, others are still waiting - If you have offsets (back taxes, child support, etc) they will take from this refund If you need to check status, honestly calling is the only reliable way. The IRS phone systems are overwhelmed, so using a service like claimyr.com can save you hours of hold time. Hope this helps clear up the confusion!

Don't get too excited... I had the same thing on my transcript back in July and I'm STILL waiting for my refund. The IRS is a complete joke rn 🤡

am i the only one who amended my return for this??? oh god did i mess everything up? 😬

I'll tell you what happened with mine - saw the adjustment on Aug 2, got the refund direct deposited on Aug 23. Never got any letter or explanation. The deposit just said "IRS TREAS 310 TAX REF" on my bank statement. So just keep checking your bank account!

This whole unemployment tax nightmare is because they changed the rules AFTER people already filed. I'm in the same boat waiting for almost $1400 back. Been checking my transcript weekly for months now. NY unemployment was already a disaster to deal with and now this tax mess on top of it all. 😡

I went through this exact same thing! That negative $926 on your transcript with code 291 is definitely a refund coming your way. I had the same codes show up in July and got my direct deposit about 2.5 weeks later - no letter or explanation, just money in my account with "IRS TREAS 310" as the description. The whole unemployment tax adjustment thing has been such a mess but at least we're finally getting money back instead of owing more! Just keep an eye on your bank account, it should hit soon.