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New Member
posted Jun 12, 2021 3:51:56 PM

How will I know if I qualify for the unemployment tax refund? When would it be coming ?

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4 Replies
Level 15
Jun 12, 2021 3:58:09 PM

It depends on when you filed (before or after the new law and the TurboTax program updates) as to whether the new tax law was taken into account in your return calculations.

 

The new law excludes up to $10,200 of the unemployment income per taxpayer from taxation, and many folks who previously filed before the new law and had unemployment income will be due a refund.

 

If you filed prior to the new law, and the "up to" $10,200 in unemployment income per taxpayer was not excluded, then see this:

 

The IRS is processing the refunds due to the unemployment income exclusion on the simplest returns first.

See this latest IRS press release from June 4:

https://www.irs.gov/newsroom/irs-sending-more-than-2-point-8-million-refunds-to-those-who-already-pa...

 

"The IRS plans to issue the next set of refunds in mid-June. The review of returns and processing corrections will continue during the summer as the IRS continues to review the simplest returns and then turns to more complex returns."

 

"Taxpayers will receive letters from the IRS, generally within 30 days of the adjustment, informing them of what kind of adjustment was made (such as refund, payment of IRS debt payment or payment offset for other authorized debts) and the amount of the adjustment."

Level 15
Jun 12, 2021 4:00:08 PM

If you have unemployment you can exclude up to 10,200 for each person if your income is under $150,000.

 

When did you file?  If you filed before the 10,200 exclusion the IRS will adjust your return and send it to you.

 

If you didn't file early your unemployment compensation will be on Schedule 1 line 7.  The exclusion will be on Schedule 1 Line 8 as a negative number. The result flows to Form 1040 Line 8.

 

 

New Member
Jun 12, 2021 4:06:52 PM

Thank you and yes I filed back in February and got my return in February before the American rescue plan was in place I filed my 2020 taxes . I was also curious how much were expected back like an estimate is all 

Level 15
Jun 12, 2021 6:21:28 PM

ETA ... sometime this summer.