Yes, you'll probably get a refund for the $10,200 unemployment.
- The up to $10,200 unemployment exclusion is reflected on Schedule 1 (Form 1040), Line 8, Other income with a description of UCE -10,200.
Per IRS: If you filed a federal tax return, the IRS will refigure your taxes using the excluded unemployment compensation amount and adjust your account accordingly. The IRS will send any refund amount directly to you.
- Do not file an amended tax return.
- The automatic refund will mean that many recipients of unemployment benefits who have already filed their returns for 2020 won’t have to take extra steps to reclaim the taxes they paid but no longer owe -- on as much as $10,200 of jobless benefits, for households with annual incomes less than $150,000. This expanded tax relief begins this year, starting for taxpayers filing returns after January 1, 2020.
However, you may need to amend your state income tax return. See Do I need to amend my state return to update my unemployment?
Note: You may also need to amend your income tax return if you were not originally eligible for the Earned Income Tax Credit (EITC) on your return, but now, because the $10,200 unemployment exclusion changed your income, you are eligible for the EITC. You would need to amend your return to claim that new credit. If you chose not to amend your return, you’d only get the additional unemployment benefits automatically from the IRS and would miss out on additional money you’d be eligible for.
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