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jskaye10
New Member

Still waiting for the IRS refunds for unemployment compensation overpayments - What should I do?

I was on unemployment in California in 2020, and overpaid in taxes because I summitted the form before the exclusion of up to $10,200 in 2020 unemployment compensation from taxable income calculations was added.  I got an email from TurboTax in march saying I didn't need to do anything because the IRS would send me the refund during the summer, but I never received anything.  What should I do or check?

2 Replies
GeorgeDenseff
Level 6

Still waiting for the IRS refunds for unemployment compensation overpayments - What should I do?

This is not official. I have friends who work for the IRS and they are trying to get these caught up by December 9.  But that has not been announced anywhere.

xmasbaby0
Level 15

Still waiting for the IRS refunds for unemployment compensation overpayments - What should I do?

You have no issues regarding unemployment on your CA return since CA did not ever tax unemployment to begin with.   If you have not yet received that "extra" federal refund for paying tax on the first $10.200 of unemployment, be patient---it is still being worked on by the IRS.

 

 

So far the IRS has issued over 8 million of those “extra” refunds for tax on unemployment.   The IRS has not announced when the next batch will be sent out, but they are still working on them.

 

 

 

The IRS is recalculating refunds for people whose AGI is $150K or below and who filed before the tax law that changed the amount of unemployment that is taxable on a federal return became effective.   

 

 

The IRS began to send out the additional refund checks for tax withheld from unemployment in May.  The refunds are being sent out in batches—starting with the simplest returns first.   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.

 

https://ttlc.intuit.com/community/tax-topics/help/how-do-i-get-the-new-unemployment-benefits-if-i-ve...

 

 

Please read this news from the IRS:

 

 

https://www.irs.gov/newsroom/irs-continues-unemployment-compensation-adjustments-prepares-another-1-...

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
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