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.

Just wanted to share my experience to hopefully ease your mind! I had almost the exact same transcript entries back in September - the 291 code with a negative amount of $847. I was skeptical at first because dealing with government agencies has taught me to expect the worst, but sure enough, about 3 weeks later I got a direct deposit from the IRS. No advance notice, no letter explaining it, just the money showing up in my account with "IRS TREAS 310 TAX REF" in the description. Based on what others are saying here and my own experience, you should definitely expect that $926 refund to hit your account soon. The unemployment tax adjustment has been one of the few government programs that actually worked in our favor for once!

Hey! I just went through this exact same situation a few months ago and can confirm that yes, you're absolutely getting that $926 back! The code 291 with the negative amount is the IRS removing the tax you already paid on your unemployment benefits. Mine showed up on my transcript in June and I got the direct deposit about 2 weeks later - no letter or anything, just money in my account with "IRS TREAS 310" as the description. It's part of the American Rescue Plan that made the first $10,200 of unemployment tax-free for 2020. Just keep checking your bank account, it should hit soon! Finally some good news from dealing with government agencies 😅

I'm in literally the exact same situation! I just checked my transcript after seeing this post and I have the same 291 code with a negative amount from last month. I've been so confused about what it meant but reading everyone's experiences here is giving me hope that it's actually a refund coming. The whole unemployment tax situation has been such a mess - I paid extra taxes when I filed in early 2021 before they changed the rules. It's crazy that they're finally fixing this automatically instead of making us jump through more hoops. Definitely going to be checking my bank account daily now! Thanks for posting this, it's so helpful to hear from others going through the same thing.

I'm going through the exact same thing right now! Just saw the 291 code with a negative amount on my transcript from a few weeks ago and had no clue what it meant until I found this thread. It's such a relief to see so many people confirming they actually received their refunds - I was worried it was some kind of mistake or that I'd have to jump through more hoops to get the money. The whole unemployment tax situation has been such a headache. I filed early in 2021 and paid taxes on all my unemployment benefits, then months later they changed the rules. At least they're fixing it automatically instead of making us amend our returns. Based on what everyone's saying here, sounds like I should expect the deposit in the next few weeks. Finally some good news after dealing with all the NY unemployment chaos! Thanks for posting this question - it's so helpful to hear from others in the same boat.