I filed my 2020 taxes the end of February with turbotax. I paid unemployment taxes along with the amount of tax that was owed to the federal tax return. I have not received any repayment of the unemployment taxes or any adjustments made to the taxes I paid to the federal government. Was I supposed to do something with turbo tax? When can I expect the refund? Frustrated
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.
Please read this news from the IRS:
If you had a balance due on the personal return and you pay the balance due then all you can do is wait for the IRS to get around to processing your return and issue a refund if you were due any refund. If you are not sure that you will be getting any refund of the taxes paid then you can use the amendment process in the program to compute the unemployment exclusion and see if there’s any money that you have due coming back to you. Do not not not file the amended return as the IRS will eventually get around to processing balance due returns and make the exclusion.