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Does anyone know what is going on with the refunds for unemployment tax break
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Does anyone know what is going on with the refunds for unemployment tax break
Only the IRS controls when a tax refund for the unemployment compensation exclusion is distributed.
Go to these IRS websites for information -
https://www.irs.gov/newsroom/2020-unemployment-compensation-exclusion-faqs
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Does anyone know what is going on with the refunds for unemployment tax break
other than to say the iRS is taking a long time to process them. from a thread I saw all these returns must be manually processed. there are millions of them.
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Does anyone know what is going on with the refunds for unemployment tax break
Unless you're entitled to a new credit or additional deductions as described in Topic E, there's no need to file an amended return (Form 1040-X) to report the amount of unemployment compensation to exclude. The IRS will perform the corrections starting in late May and continue throughout the summer and into the fall.
If you already filed your tax return, we'll determine the correct taxable amount of unemployment compensation and tax. We'll also adjust any non-refundable or refundable credits that you reported on your return that are impacted by the exclusion. In addition, if you did not claim the Recovery Rebate Credit, Earned Income Credit with no qualifying dependents or the Advance Premium Tax Credit on your tax return, but are now eligible when the unemployment exclusion is applied, you do not need to file an amended return. The IRS will calculate the credit for you and include it in any overpayment.
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