Unemployment adjustment

[Dsawyer261]

So I filled my taxes prior to the last stimulus changes and I had unemployment in 2020. I have checked my tax records online to see if they have processed and it looks like my refund will be sent 7/16. However, it looks like only the 1st 2 stimulus checks and my taxes were adjusted, not the third check. Has anyone who filed early and received their refund adjustment have all 3 checks accounted for or just the first 2? Is the 3rd check figured separately or do I have to claim it on my taxes next year or is there another process? Thanks for any help.

[DoninGA]

The third stimulus payment is separate from the 2020 tax return.

Go to this IRS website for the third stimulus payment information - https://www.irs.gov/coronavirus/get-my-payment

[DoninGA]

If you filed your tax return with unemployment compensation entered and it was filed before the exclusion was effective,  the IRS is calculating the tax refund for the exclusion which is a separate tax refund.

The IRS started sending refunds in May for those that were eligible based on the unemployment compensation exclusion.  The IRS will continue sending refunds in batches for the next several months.

Go to these IRS websites for information - 

https://www.irs.gov/newsroom/irs-sending-more-than-2-point-8-million-refunds-to-those-who-already-pa...

https://www.irs.gov/newsroom/irs-begins-correcting-tax-returns-for-unemployment-compensation-income-...

https://www.irs.gov/newsroom/2020-unemployment-compensation-exclusion-faqs

[Terry81056]

Did turbo tax automatically file amended returns for the Unemployment Adjustment?  When I original file my taxes through turbo tax I owed $2300 but turbo tax then adjusted my return that now qualifies for a refund of $853 due to the Unemployment Adjustment.  Unfortunately I am getting notices from the IRS asking me to pay the $2300.  I spoke to the IRS an they said my return has not been reviewed yet but I do qualify for the refund.

What do I do now so my credit does not get affected and the IRS does not come knocking on my door?

[hopey71]

I am still waiting for my adjustment for my Unemployment compensation from when I filed my taxes before the exemption had been taken out.  I had to go to the Revenue Department at the end of June, due to Turbotax treating my Unemployment as railroad Unemployment.  Also, I had only received $216 of my $690 tax return.  How do I know this adjustment has been made and how will I know when I am receiving the remainder of the money and my amended amount for unemployment?

[Critter-3]

There is no such thing as "railroad unemployment" and there is only one place to enter a 1099-G for unemployment in the program so I don't know what you entered or where.   Look at your return ... the unemployment should have shown up on the Sch 1 line 7.  If it is there correctly and you have already filed prior to the change then all you can do is wait.  Sounds like the IRS processed the original return and sent the original refund and now all you can do is wait for them to process the correction and send that refund.  

If you put the unemployment in the wrong spot  then you will need to amend it.        

• How to amend (change or correct) a return you already filed

[ShermickaReed]

Hey love. If you have an IRS account I strongly suggest you create one. You can view your tax transcripts which shows EVERYTHING thats been happening with your taxes such as when they were received, when refunds were issued, etc.

[hopey71]

I was sent a notice from the Department of Revenue saying when I entered it in Turbo Tax while doing taxes that for some reason it treated it as railroad unemployment.  I wasn't the only one this happened to.  The IRS processed the correction and sent me the remainder of $474 for my refund just recently.  Now waiting on them to do the amended return.

[xmasbaby0]

@hopey71 We would love to see a screenshot of a letter that says you received "railroad unemployment" since there is no such thing.   You may have been employed by the railroad and then become unemployed---and then you could have received unemployment compensation from your state.

 If you received unemployment it came from your state, and you would have received a 1099G from the state.   The 1099G was supposed to be entered on your tax return.   If you filed your tax return before the tax laws changed then it is possible that you paid tax on the first $10,200 of the unemployment and will get a refund from the IRS for that.

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-...

https://www.cnet.com/personal-finance/taxes/more-unemployment-tax-refunds-are-arriving-but-when-here...

[VolvoGirl]

Who is the letter from?  Department of Revenue sounds like for a state return not federal.   IRS would be the US Treasury dept.