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Originally Posted by Amethyst
The way you wrote it makes me think she is refunding the entire amount. It makes sense since the reason for it not being completed is her fault. I wouldn't say anything unless she then tried not to return it all.
If she used that money to buy materials which could be given to you and used by someone else, then maybe you want to negotiate. If it was me, I would probably just say I was going to start fresh with someone else and she could keep the materials to use as she wished in the future (and refund the entire deposit).
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I was going to say, you might have to negotiate out material costs. If she's willing to sell you any materials that she bought going against the refund. It sounds like it was a matter that for whatever reasons she can't complete the job, whether its personal or whatever. If she's completed some of the work and paid for materials out of the deposit, it might be far for her to receive her costs.