When I did my taxes my refund drastically dropped when I entered the unemployment. I’m assuming it was me paying taxes in it at that point. Wanting to know if I should receive the additional irs refund on that money since the new tax break on unemployment. Thanks.
you've got your "quote marks" reversed.
Form 1040 determines the tax on your income.
If you filed before March 11, IRS will recompute the tax on your unemployment compensation and send you the difference.
Unemployment is never "taxed" when you get it but you could have had taxes "withheld" at the point of distribution just like wages have withholding. When you complete your tax return all your income from all sources are added together and the taxes you owe are calculate then the amount withheld during the year is netted against the tax bill. Had too much withheld in advance means you get a refund of the overpayment. Don't pay in enough in advance means you owe on the return.
Sorry about my quote marks. So what you mean is at the point of filing, they would have taxed that unemployment right? Therefore, there should be an additional refund headed my way at some point right? I just had heard that the irs was nearly done with recalculating these returns and I’m yet to receive anything. So I’m just trying to determine 100% wether we are due an additional refund.
The IRS is recalculating all the returns that were filed before 3/26 when the programming changes to reflect the exclusion of the unemployment ... this may take all summer to make all the corrections so just sit tight.
The IRS is nowhere near to being "done" with the unemployment refunds for people who filed before the tax law changed. They have only recently begun to send out those refunds, which will continue to be sent during the next several months.
The IRS began to send out the additional refund checks for tax withheld from unemployment in May. If you are eligible for the extra refund for federal tax that was withheld from your unemployment the IRS will be sending you an additional refund sometime during the next several months. TurboTax cannot track or predict when it will be sent. The IRS has not provided a way for you to track it, so all you can do is wait for the refund to arrive.
Please read this very recent news from the IRS:
https://www.irs.gov/newsroom/2020-unemployment-compensation-exclusion-faqs