Refund for unemployment

[Stepherz804]

I am a Pennsylvania filer and I had taxes deducted from my unemployment compensation for last year. I'm getting confusing information as to whether I should expect some of that $2000+ I had withheld. If PA doesn't tax unemployment benefits, why was it withheld and why wouldn't I be getting some back per the $10200 refund amount?

[xmasbaby0]

Here is why you do NOT amend your federal return for unemployment:

Please read this very recent news from the IRS:

https://www.irs.gov/newsroom/irs-to-recalculate-taxes-on-unemployment-benefits-refunds-to-start-in-m...

[Stepherz804]

I didnt amend it. I'm trying to confirm whether or not I should be expecting a refund on this or not and how much.

[Kbichard]

Did you have PA state taxes withheld from your unemployment? 
Since PA doesn't tax unemployment to begin with, any state withholding from PA for unemployment 
 on Form 1099G would be refundable regardless of the federal change to exclude up to $10,2000 in unemployment income.
You were not taxed in PA on the unemployment amount so you don't do anything for the state.
The IRS will adjust the federal amount of unemployment excluded from income and send you the difference, if any, sometime by late May.

[DMarkM1]

The withholding you mention is federal withholding.  PA does not tax and therefore does not withhold taxes on unemployment benefits. 

If you were getting a federal refund before the federal tax exclusion of up to 10,200 unemployment then your refund will be bigger once the IRS corrects it.  If you owed taxes the amount you owed will decrease as a result of the changes.

Your PA return will not change since PA still does not tax unemployment.  

You can sign in to your TurboTax account and select the Print/download option to see an updated version of your return that will include the new refund amount as a result of the changes.  

[Stepherz804]

Thank you! I had filed before the act was put in motion so I just didn't want to be expecting something I wouldn't be getting. Hopefully they have more of a time frame soon.

[ekippen1]

Do you know if you are required to refund if that means it will take longer for me to receive the payment

[DawnC]

If you have to pay back the state, it won't affect your federal return.  Or is that what you are asking?    @ekippen1

[ekippen1]

@DawnC  Sorry if my wording is weird. To get the EITC I had to amend my federal return. Will that delay me receiving my extra return due to the unemployment tax break or will I still receive it once the IRS starts sending those out?

[AmyC]

We do not know how the IRS is processing those returns.

• If they are cross checking for an amended return while processing the unemployment, then you will see the one correction.
• If they are handling the unemployment and then the amended, you will see two corrections.