Paid taxes for unemployment before new $10,200 update.

[ae86tran]

I owed taxes for my unemployment benefits . With the new $10,200 credit, if it covers my taxes owed will the IRS pay me the money I sent them and possibly give me a refund if it covers what I owed? 

[Cynthiad66]

IRS will recalculate taxes owed based on the taxable amount of Unemployment Compensation.  The adjustment will reduce your taxes and will be reflected.  IRS will provide a notification of the adjustments made  to the return.  If there is still a refund due after the adjustments, you will receive a refund.

[Opus 17]

If you owe income tax based on the old calculation and filed your return but have not paid yet, you have two choices.

1. Pay now, and get a refund when the IRS recalculates your return.

2. Don't pay now and wait for the IRS to send a smaller refund, or send you a bill if the recalculation doesn't completely cover what you owe.

With choice #1, how fast you get the refund will depend on how fast the IRS processes the recalculation and whether the payment and the refund cross in the system.  With choice #2, if you owe tax, the IRS will also assess a late payment penalty and interest at the rate of about 1% per month.  I don't which will be best for you.