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Unemployment tax break

Hello I filed my taxes on March 21 2020 .. I’m not sure if the unemployment tax break refund was included in my refund back in April .. I have heard nothing from IRS nor do I see any activity on my transcripts .. I do see my federal tax return amount is higher than what I was already paid back in April by a couple grand .. I also see the UCE break on my 1040 .. but I am unsure if i will eventually get that unemployment tax break (since I haven’t heard or received anything from IRS) or was I already compensated? Can someone please clearify this ?

2 Replies
Level 15

Unemployment tax break

he IRS is recalculating refunds for people whose AGI is $150K or below and who filed before the tax law that changed the amount of unemployment that is taxable on a federal return became effective.   



The IRS began to send out the additional refund checks for tax withheld from unemployment in May.  The refunds are being sent out in batches—starting with the simplest returns first.   If you are eligible for the extra refund for federal tax that was withheld from your unemployment the IRS will be sending you an additional refund sometime during the next several months.  TurboTax cannot track or predict when it will be sent.  The IRS has not provided a way for you to track it, so all you can do is wait for the refund to arrive.



Please read this very recent news from the IRS:

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
Level 15

Unemployment tax break

Q. I filed my taxes on March 21 2021. Was the unemployment tax break refund was included in my refund back in April?

A. Probably not.  The TurboTax (TT) software was not capable of including it at that time.  But there was a workaround, available, to claim it.  To verify, look at line 8 on Schedule 1.  If there is a not negative (-) 10,200 on line 8, you did not claim the "unemployment tax break". 


As the other answer indicated, the IRS will do it automatically.  


Q. How do I know if I should be expecting additional refund based on the (up to) $10,200 unemployment exclusion?

A. Prepare a test return with $10,200 less income  and compare the result to the original return.  You can use this tool

If your tax liability was already zero, it's unlikely that you will be getting more.  But, it's possible, particularly if you become eligible for more EIC. 

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