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Level 1
posted May 14, 2021 11:55:09 AM

$10,200 Unemployment help

I submitted my federal taxes a few months ago, which were accepted. I setup a payment plan right after. Nothing has been taken out of my account yet by the irs (idk why). Here’s my question. I was unemployed half of last year, the tax break for the $10,200 wasn’t applied yet when I filed. So the number I owe should be considerably lower than what it is. I heard they are sending refunds to ppl that paid, but I setup a payment plan and nothing has been paid yet. So what do I do? I don’t see my total of what I owe on the irs website either.

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5 Replies
Expert Alumni
May 14, 2021 12:12:13 PM

The good news is the the IRS has reviewed the first round of Unemployment Calculation Exclusion (UCE)  for about 21,000 filers.  Hopefully you will have a response soon. 

 

At this time you should wait.  The IRS will notify you as to how they adjusted your return via mail. 

 

The bill makes the first $10,200 of federal unemployment income ($20,400 for married filing jointly) tax-free for households with income less than $150,000. The legislation excludes only 2020 federal unemployment benefits from taxes, not unemployment income received in 2021.

 

  • If you already filed your 2020 tax return, you do not need to do anything to get these additional unemployment benefits. The IRS announced that they will automatically adjust your return and send any additional refund amount directly to you. However, some people may now be newly eligible for additional deductions and credits not already included on the original tax return. In these cases, you will likely want to amend your return to claim these additional dollars. Additional information on this is below.

-follow this link for additional information-

Unemployment Stimulus: Am I Eligible for the New ...

 

 

 

 

 

Level 1
May 14, 2021 12:18:39 PM

Thank you Ray. I will wait. So basically  they will adjust what I owe themselves, and send a letter via mail informing me my next steps?

 

Thanks!

Employee Tax Expert
May 14, 2021 12:23:39 PM

No.  An adjustment will be calculated and your refund will be issued to you automatically, if you qualify. There will be no additional steps for you to take. 

 

@motivation033

Level 1
May 14, 2021 12:36:43 PM

But I haven't paid anything yet. The IRS hasn't taken any money out of my account yet. I'm confused when you say refund because I haven't paid anything yet. They can't refund me if they haven't taken anything. Unless i'm understanding this wrong. If I owe 2 grand without the $10,200 unemployment credit applied, are they going to recalculate that for me and let me know what the total i'll owe is? 

Expert Alumni
May 14, 2021 1:22:33 PM

Yes, the IRS will let you know what you still owe after they recalculated it. But you might want to create an account with the IRS to view your balance: View Your Account Information