You are eligible for the unemployment exclusion if all of the following are true.
- You reported unemployment benefits as income on your 2020 tax return.
- You did not get the unemployment exclusion on the 2020 tax return that you filed. The unemployment exclusion would appear as a negative amount on Schedule 1 line 8, with the abbreviation UCE on the dotted line to the left of the amount.
- Your Adjusted Gross Income (AGI), not including unemployment, is less than $150,000.
If all three of those conditions are true, The IRS will recalculate your tax return and send you the additional refund. Using the lookback option does not affect your eligibility for the unemployment exclusion. It might take several months to get the refund. For details see the following IRS announcements and FAQ.
IRS to recalculate taxes on unemployment benefits; refunds to start in May
IRS begins correcting tax returns for unemployment compensation income exclusion
IRS sending more than 2.8 million refunds to those who already paid taxes on 2020 unemployment compe...
2020 Unemployment Compensation Exclusion FAQs
