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New Member
posted Aug 3, 2021 12:23:49 PM

How can I tell if I am getting a refund on my unemployment tax that I paid? I didnt have it taken out of my checks through the year but inputted at tax time.

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2 Replies
Level 15
Aug 3, 2021 12:48:53 PM

The IRS is calculating separate tax refunds for the unemployment compensation exclusion for all those that are eligible.  They are sending the refunds in batches which started in May and are continuing throughout the summer.

Go to these IRS websites for information -

 

https://www.irs.gov/newsroom/irs-continues-unemployment-compensation-adjustments-prepares-another-1-point-5-million-refunds

 

https://www.irs.gov/newsroom/irs-begins-correcting-tax-returns-for-unemployment-compensation-income-exclusion-periodic-payments-to-be-made-may-through-summer

 

https://www.irs.gov/newsroom/2020-unemployment-compensation-exclusion-faqs

Level 15
Aug 3, 2021 12:58:16 PM

You will get a federal income tax refund for the unemployment exclusion if all of the following are true.

 

  • You reported unemployment benefits as income on your 2020 tax return, on Schedule 1 line 7.
  • 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 tax on Form 1040 line 16 is not zero.
  • Your Adjusted Gross Income (AGI), not including unemployment, is less than $150,000. In other words, Form 1040 line 11 minus Schedule 1 line 7 is less than $150,000.

 

If all four of those conditions are true, The IRS will recalculate your tax return and send you a refund. It might be a couple of months before you get it. For more information see the links that DoninGA posted above.