Refund for unemployment

Forum|Forum|5 years ago
May 12, 2021
1 reply
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I am a Pennsylvania filer and I had taxes deducted from my unemployment compensation for last year. I'm getting confusing information as to whether I should expect some of that $2000+ I had withheld. If PA doesn't tax unemployment benefits, why was it withheld and why wouldn't I be getting some back per the $10200 refund amount?

Not A Product Question

xmasbaby0

Level 15

Here is why you do NOT amend your federal return for unemployment:

Please read this very recent news from the IRS:

https://www.irs.gov/newsroom/irs-to-recalculate-taxes-on-unemployment-benefits-refunds-to-start-in-may

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

Stepherz804Author

Level 2

I didnt amend it. I'm trying to confirm whether or not I should be expecting a refund on this or not and how much.

Kbichard

Level 3

Did you have PA state taxes withheld from your unemployment?
Since PA doesn't tax unemployment to begin with, any state withholding from PA for unemployment
on Form 1099G would be refundable regardless of the federal change to exclude up to $10,2000 in unemployment income.
You were not taxed in PA on the unemployment amount so you don't do anything for the state.
The IRS will adjust the federal amount of unemployment excluded from income and send you the difference, if any, sometime by late May.