Unemployment
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shivish1979
Returning Member

Unemployment

So, I filed my taxes before the new bill was passed where you now don’t have to pay taxes on unemployment up to 10,200 for a single person.. ok, so I made 12,600 on unemployment and had 1,600 taken out. How does this work now? Should I expect a refund or will I owe something back? I also made about 9920 at my job and had 100 taken out for taxes for that and have 3 children who live with me.. 

3 Replies
KathrynG3
Employee Tax Expert

Unemployment

The main thing is that the IRS is going to recalculate everything for you automatically. It may cause a delay in processing any refund. Any additional amounts you are entitled to will be refunded to the last known bank account on file or mailed to the last known address on file.

  1. Please check our E-File Status Lookup Tool or check IRS: Where's my refund? for updates. Always use only TurboTax, the IRS, or your state website to check on your status.
  1. For your state filing status: State Return Refund Tracking.

To answer your questions:

  1. The first $10,200 of unemployment compensation is tax free. There will be tax owed on $2,400. The tax paid of $1,600 will count toward taxes paid. If your tax bill is less than $1,600, the difference will be refunded.
  2. The $100 of taxes taken out for $9,920 of income could be below what taxes will be charged. TurboTax would automatically calculate this for you.
  3. For your three children that live with you, this may increase your refund depending if they are qualifying children. File as Head of Household if you are not married and provided more than 50% of the children's support.
    1. Do I qualify for Head of Household in 2020?
    2. 2020 Child Tax Credit Calculator and Top 7 Requirements - TurboTax Tax Tips & Videos
    3. You did have the option to use 2019 details in order to claim larger credits. For more information, see: New option for claiming the Earned Income Tax Credit and Additional Child Tax Credit | Internal Reve...
      1. If this would increase your credit and was not done, you may want to file an amended return. For more information, see: How do I amend my 2020 TurboTax Online return?
shivish1979
Returning Member

Unemployment

What do you mean about my tax bill being less than $1600? And yes my three children I do qualify for eic. I have already received my refund. I’m just co fused because I plugged in all my numbers again the tax calculator, because I thought turbo tax adjusted it with the new tax break and it shows me getting back less of a refund that what I have already received.

KathrynG3
Employee Tax Expert

Unemployment

  1. The IRS will calculate your tax bill. You mentioned you had paid in $1,600. I meant that if the IRS calculated your tax bill as less than tat, you would get a refund.
  2. Since you have already received your refund, then the IRS has finished processing your return. What you have received will not be taken away. Yes, I agree, that is confusing that the tax calculator is different. But, TurboTax and the IRS should be up to date with all the new tax breaks now. There is no way to explain why there was a change without seeing your specific details and verifying all your details were exactly the same as what was submitted. 
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