The American Rescue Plan Act recently introduced a plan to refund the taxes people paid for unemployment benefits during 2020, I opted to take 10% out of each check towards taxes out of my benefits... will I receive that 10% for every check back to me? Will I be refunded? I paid over $900 in taxes because I opted in to 10% being withheld.
Did you already file your tax return?
Here is why you do NOT amend your return for unemployment:
Please read this very recent news from the IRS:
If you have not yet filed your tax return then prepare your return and enter your 1099G ---then let the software do its job. The software will calculate how much--if any--of your unemployment is taxable. If you paid too much tax on your 2020 income then you will get a tax refund.
My question is if I will be refunded the 10% that was taken out of every check I received from my unemployment benefits... I opted in to have 10% of federal taxes withheld from every check I received
You will not necessary get back every cent that was withheld from unemployment. Your tax liability is based upon the total amount of income you received in 2020 and on how much tax you paid in 2020. So...maybe you will get it all back or maybe just some of it. We cannot see your tax return. We do not know what other income you had or how much tax you had withheld from any other income you received. And...we do not know if the tax you had withheld was only for federal or also for your state....nor do we know what state you are in.