Mystery check from IRS

[SecondCor521]

Amongst everything else, that $122.13 of interest will be reportable and taxable interest income on your 2022 tax return. The IRS should send you an interest statement in about 10 months.

And I agree it's probably related to your 2020 tax return. Two possible reasons:

1. If either of you were on unemployment, a tax law made the first $10,200 of unemployment income in 2020 non-taxable at the federal level. This is the less likely option.

2. If you were on ACA and had an excess premium tax credit repayment (look at the last few lines of your 2020 Form 8962), that was changed to not require repayment. If you filed before the change, then the IRS would refund it to you. This is the most likely option.

In theory, both of the above could apply to you.

See https://www.irs.gov/newsroom/irs-of...s-help-many-people-now-preparing-2020-returns for details (scroll down a bit to the 2020 retroactive changes).

 

[rodi]

2. If you were on ACA and had an excess premium tax credit repayment (look at the last few lines of your 2020 Form 8962), that was changed to not require repayment. If you filed before the change, then the IRS would refund it to you. This is the most likely option.


See https://www.irs.gov/newsroom/irs-of...s-help-many-people-now-preparing-2020-returns for details (scroll down a bit to the 2020 retroactive changes).

Ding ding ding.... This makes total sense.

from the link you provided:

The new law suspends the requirement to repay 2020 excess APTC. This means that taxpayers with excess APTC for 2020 do not need to report the excess APTC or file Form 8962. The IRS will automatically reduce the repayment amount to zero. In addition, the agency will automatically reimburse anyone who has already repaid their 2020 excess APTC.

In the meantime I now have a verified id.me.... Couldn't get the uploaded DL to work - probably because the picture on my DL has a reflection on my glasses. (Blame the DMV). So I went through the wait for a video conference verification. Logging onto the irs.gov provided zero clues...

 

[someday soon]

Glad you got your magic check!
Now if only the IRS would send me the $3K or so I'm owed from my 2021 amended return that they received 7 months ago.
I keep hoping it's still sitting in one of their to-do piles somewhere....

 

[WWDog]

I tried logging into the IRS and got stuck on the id.me not accepting my license picture. Will try calling on monday.

Same here. I tried several times then just gave up.

 

[rodi]

I got the official explanation from the IRS, by mail, yesterday. SecondCor521 gets the win for the reason why.

2. If you were on ACA and had an excess premium tax credit repayment (look at the last few lines of your 2020 Form 8962), that was changed to not require repayment. If you filed before the change, then the IRS would refund it to you. This is the most likely option.

From the IRS letter:

"We changed your 2020 Form 1040SR because of recent tax laws, rulings, or regulations required us to correct your Excess advance premium tax credit repayment"


I'll be depositing the check now and am no longer worried that what the tax man gaveth to me the tax man would be taketh-ing from my son. LOL.

 

[MichaelB]

Nothing better then some unexpected money …

 

[SecondCor521]

I got the official explanation from the IRS, by mail, yesterday. SecondCor521 gets the win for the reason why.



From the IRS letter:

"We changed your 2020 Form 1040SR because of recent tax laws, rulings, or regulations required us to correct your Excess advance premium tax credit repayment"


I'll be depositing the check now and am no longer worried that what the tax man gaveth to me the tax man would be taketh-ing from my son. LOL.

Yay! Glad you have the explanation now.

One thing to think about is that it is possible that they paid you some interest which they would have included in the refund amount. Interest, if any, should be reported on your 2022 Schedule B.

You can figure out the amount of interest either by (a) looking at your tax transcript online, (b) waiting for a notice from the IRS about 10 months from now, or (c) comparing the amount of the check with the amount of excess premium repayment on your 8962. Option (c) is least preferable.

 

[N02L84ER]

SecondCor, what would you do if the interest was less than $10 and you do not receive a notice from the IRS?

 

[CardsFan]

I got the official explanation from the IRS, by mail, yesterday. SecondCor521 gets the win for the reason why.

Personally, I would sit on it for a few weeks. Sometimes the Gummint puts the cart before the horse and you get a check with an explanation a few weeks later.

WADR, I will take credit for predicting you would get an explanation after the check.

 

[SecondCor521]

SecondCor, what would you do if the interest was less than $10 and you do not receive a notice from the IRS?

I'd look it up on my account transcript and report it on my Schedule B if the amount were more than 49 cents.

 

[rodi]

I know the amount of interest - it's on the check - which I am putting in my tax file for 2022. (I deposited online, so I still have the physical check.)

Thanks for the heads up on the interest being taxable.

 

[TBorstad]

We received a mystery check from the IRS last fall. Turns out we had used a 2020 form for estimated taxes instead of a 2021 form. We assumed that the IRS would apply it forward, but they mailed it back with no explanation. We finally logged into our IRS account to figure out what had happened.