Ok, looking into that further, it seems like in certain states when married filling jointly you can exclude up to 20,400 in unemployment, even though only one spouse received UI.
UI exclusion for married couples in CA due to community property rules. It states: “MFJ taxpayers may exclude up to $20,400 of unemployment income even if one of the spouses had less than $10,200 in UI and the other spouse had more than $10,200.” With that logic it would mean that if one spouse got $30k of UI and one spouse had NONE, then they can still exclude $20,400 of UI income.
This could be the best explanation why I received this tax refund.
In case anyone interested, there separate rules for Community Property states: https://www.irs.gov/newsroom/2020-unemployment-compensation-exclusion-faqs-topic-a-eligibility
also
A4. If you entered an exclusion amount less than what it should have been based on FAQ I'm married and live in a community property state. Am I eligible for the exclusion?, you do not need to file an amended return. The IRS will recalculate your exclusion amount following this guidance and adjust your return for the difference. These corrections are currently planned for later this summer. You will receive a notice regarding the correction within 30 days of your account being adjusted.
