HelenC12
Expert Alumni

Get your taxes done using TurboTax

Yes, it affects your refund by increasing it. If you got about $20,000 of unemployment pay, the $9,800 will be taxed and the $10,200 will not be taxed.

 

However, you may have to file an amended return for your state. See Do I need to amend my state return to update my unemployment?

 

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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