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New Member
posted May 31, 2021 1:47:52 PM

Do I need to take any action to get my additional refund for the unemployment taxes that were withheld in 2020? I filed prior to the announcement that it would be nontax.

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2 Replies
Level 15
May 31, 2021 1:52:48 PM

No, there is nothing for you to do.  The IRS will be calculating and issuing the tax refunds based on the unemployment compensation exclusion for all who are eligible.

 

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

 

And this IRS website for exclusion FAQ's - https://www.irs.gov/newsroom/2020-unemployment-compensation-exclusion-faqs

Level 15
May 31, 2021 1:54:49 PM

Your unemployment is not necessarily all nontaxable, and you won't necessarily get a refund of all the tax that was withheld. The first $10,200 of your unemployment is nontaxable. The IRS will exclude up to $10,200 of unemployment from your income, and recalculate your tax return accordingly.