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Unemployment issue

We filed in Feb, was accepted and had a deposit date of March 13, 2021.  That has come and gone!  We did file with the full unemployment benefits as this was just before they passed the $10,200 non-tax amount.  When I do Where's My Refund, it says not processed yet; however, when I go to look at my tax return in TurboTax, it now shows the -$10,200 and my refund now shows quite a bit more.  Evidently it has affected the EIC and probably a lower tax bracket.  You cannot reach anyone at the IRS or even local Tax Advocate Office, I did a transcript and it shows nothing for 2020.  I am confused as to why TT shows the changes, yet I have no info from the IRS as to when I can expect even my original refund.

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1 Reply
DanaB27
Expert Alumni

Unemployment issue

Please be aware, the IRS is currently taking longer to process returns because they are backlogged. Please keep checking the IRS Where's My Refund? site for updates.

 

TurboTax shows the new refund because it is updated with the unemployment law changes. 

 

You do not need to file an amended return for the unemployment benefits exclusion unless the calculations make you newly eligible for additional federal credits and deductions not already included on the original tax return.

 

For example, the IRS can adjust returns for those taxpayers who claimed the Earned Income Tax Credit (EITC) and, because the exclusion changed the income level, may now be eligible for an increase in the EITC amount which may result in a larger refund. However, taxpayers would have to file an amended return if they did not originally claim the EITC or other credits but now are eligible because the exclusion changed their income.

 

Please see IRS begins correcting tax returns for unemployment compensation income exclusion for details.

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