OmM1
Employee Finance Expert

Get your taxes done using TurboTax

Hello Ahughes45

 

As I understand you are concerned that while $579 was withheld from unemployment, why you got an additional refund of $173 only as against $579.

 

While finalizing your taxes for 2020, the $579 withholding was accounted along with your other tax withholding, if any, & credits and was applied towards you tax liability and you were refunded of $1193. In other words think of $579 as an on account payment and when upon filing your tax return it was determined that overall your taxes paid and credits due to you resulted in an overpayment of $1193 and it was refunded to you in the first instance.

 

When the new law became effective and IRS got time to recheck your account (tax return), IRS realized that applying new law, they should have refunded $1366, instead of $1193; hence the additional refund of $173 to you.

Hope this helps, since you have not yet received IRS letter explaining how they calculated this amount for you; you may want to get into your IRS account and check the  IRS transcript.

If this does not answer your question fully, please do not hesitate to post further on this thread,

 

 

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