LenaH
Employee Tax Expert

After you file

It depends. If you received unemployment compensation in 2020, then this could have caused your increase in refund. 

 

If your modified adjusted gross income (AGI) is less than $150,000, the American Rescue Plan enacted on March 11, 2021, excludes from income up to $10,200 of unemployment compensation paid in 2020, which means you don’t have to pay tax on unemployment compensation of up to $10,200. If you are married, each spouse receiving unemployment compensation doesn’t have to pay tax on unemployment compensation of up to $10,200. Amounts over $10,200 for each individual are still taxable. If your modified AGI is $150,000 or more, you can’t exclude any unemployment compensation. If you file Form 1040-NR, you can’t exclude any unemployment compensation for your spouse.

 

Per the IRS, you should not amend your return for an adjustment for unemployment. An adjustment will be calculated and your refund will be issued to you automatically, if you qualify. The first refunds are expected to be made in May and will continue into the summer.

 

IRS to recalculate taxes on unemployment benefits; refunds to start in May

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"