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lgpecin1
New Member

Does turbotax know if I'm getting a unemployment tax break refund?

I was told that my changes for the unemployment tax break will show up on turbotax, is this true?
2 Replies
xmasbaby0
Level 15

Does turbotax know if I'm getting a unemployment tax break refund?

The 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.

 

https://ttlc.intuit.com/community/tax-topics/help/how-do-i-get-the-new-unemployment-benefits-if-i-ve...

 

 

Please read this very recent news from the IRS:

 

https://www.irs.gov/newsroom/irs-to-recalculate-taxes-on-unemployment-benefits-refunds-to-start-in-m...

 

https://www.irs.gov/newsroom/irs-begins-correcting-tax-returns-for-unemployment-compensation-income-...

 

https://ttlc.intuit.com/community/tax-credits-and-deductions/help/am-i-eligible-for-a-new-credit-or-...

 

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

**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.**
Hal_Al
Level 15

Does turbotax know if I'm getting a unemployment tax break refund?

Q. Does TurboTax (TT) know if I'm getting a unemployment tax break refund?

A.  No.

 

Q. I was told that my changes for the unemployment tax break will show up on TurboTax, is this true?

A.  No.

 

See full explanation by xmasbaby0 above.

 

It is possible to re-do your return in TT, to see the corrected result.  That is not sent to the IRS and  will over ride your current return. 

 

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 

https://turbotax.intuit.com/tax-tools/calculators/taxcaster/?s=1

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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