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New Member
posted Aug 18, 2021 10:31:36 AM

Do I have to amend my return to receive my federal unemployment taxes back

I filed my income taxes in February prior to the change that Federal Unemployment was not taxable. As I had already filed, how do I receive those federal unemployment taxes back?

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2 Replies
Level 15
Aug 18, 2021 10:37:50 AM

The IRS is calculating the tax refunds for the unemployment compensation exclusion for those that are eligible.  The IRS is sending the refunds in batches throughout the summer months starting in May.  These refunds are separate from any federal tax refunds.  You do not need to amend your 2020 federal tax return.

Go to these IRS websites for information - 

 

https://www.irs.gov/newsroom/irs-continues-unemployment-compensation-adjustments-prepares-another-1-point-5-million-refunds

 

https://www.irs.gov/newsroom/irs-begins-correcting-tax-returns-for-unemployment-compensation-income-exclusion-periodic-payments-to-be-made-may-through-summer

 

https://www.irs.gov/newsroom/2020-unemployment-compensation-exclusion-faqs

Level 15
Aug 18, 2021 3:13:02 PM

Not everyone will benefit from that exclusion ... 

 

You will get a federal income tax refund for the unemployment exclusion if all of the following are true.

 

  • You reported unemployment benefits as income on your 2020 tax return, on Schedule 1 line 7.
  • You did not get the unemployment exclusion on the 2020 tax return that you filed. The unemployment exclusion would appear as a negative amount on Schedule 1 line 8, with the abbreviation UCE on the dotted line to the left of the amount.
  • Your tax on Form 1040 line 16 is not zero.
  • Your Adjusted Gross Income (AGI), not including unemployment, is less than $150,000. In other words, Form 1040 line 11 minus Schedule 1 line 7 is less than $150,000.

                             

If all four of those conditions are true, The IRS will recalculate your tax return and send you the refund. It might be a couple of months before you get it. For more information see the following IRS announcements and FAQ.


IRS to recalculate taxes on unemployment benefits; refunds to start in May


IRS begins correcting tax returns for unemployment compensation income exclusion


IRS continues unemployment compensation adjustments, prepares another 1.5 million refunds


2020 Unemployment Compensation Exclusion FAQs