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I received over $20,000 in Unemployment in the year 2020 but also paid taxes on it. Will I receive a refund on this? To this date I have not received anything.

 
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I received over $20,000 in Unemployment in the year 2020 but also paid taxes on it. Will I receive a refund on this? To this date I have not received anything.

IRS website for the status of refunds for the 2020 unemployment compensation exclusion - https://www.irs.gov/newsroom/irs-operations-during-covid-19-mission-critical-functions-continue

 

Status of Unemployment Compensation Exclusion Corrections: The IRS continues to review tax year 2020 returns and process corrections for taxpayers who paid taxes on unemployment compensation, to exclude the compensation from income if eligible. To date, the IRS has issued over 11.8 million refunds totaling $14.5 billion. The IRS is now concentrating on more complex returns. Some taxpayers will receive refunds, while others will have the overpayment applied to taxes due or other debts. The IRS will mail a letter to affected taxpayers to inform them of the corrections, generally within 30 days from when the corrections were completed. See the 2020 Unemployment Compensation Exclusion FAQs for more information, including details on filing an amended return.

I received over $20,000 in Unemployment in the year 2020 but also paid taxes on it. Will I receive a refund on this? To this date I have not received anything.

only a maximum of $10,200 is exempt.

you need to contact the iRS to see if they have your return. it is also possible yours is among the 3 million returns the IRS still hasn't fully processed.

 

rjs
Level 15
Level 15

I received over $20,000 in Unemployment in the year 2020 but also paid taxes on it. Will I receive a refund on this? To this date I have not received anything.

If you filed your 2020 tax return after March 26, 2021, the $10,200 unemployment exclusion was included in your tax return. You will not get a separate refund for the tax on the unemployment.


Look at your 2020 tax return. You will get an additional 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 any one of those four conditions is not true, you will not get an additional refund for the tax on the unemployment.

 

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