Without knowing more about your friends and parents tax situation, we are not in a position to offer an opinion as to why they received a refund for tax year 2020 but you did not. Generally, unemployment income is considered taxable income and is reported on your federal tax return. Whether you also have to report this income on your State tax return depends on your particular state.
We believe the $10,200 in unemployment compensation you mention in your post relates back to the pandemic era relief laws that changed how unemployment compensation would be taxed for tax year 2020. In March 2021, under the American Rescue Plan, the first $10,200 in unemployment benefits collected in the tax year 2020 were not subject to federal tax. To have qualified for the exclusion, a taxpayer needed a modified adjusted gross income of less than $150,000. The modified AGI limit included benefits plus any other sources of income. A taxpayer claimed the exclusion when filing 2020 taxes during 2021.
@Holidayinn98
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