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tjs0222
New Member

How much is the Unemployment tax break refund amount??

 
2 Replies
VolvoGirl
Level 15

How much is the Unemployment tax break refund amount??

If you have unemployment you can exclude up to 10,200 for each person if your income is under $150,000.  Your unemployment compensation will be on Schedule 1 line 7.  The exclusion will be on Schedule 1 Line 8 as a negative number. The result flows to Form 1040 Line 8.

 

Have you filed yet?  When?

Hal_Al
Level 15

How much is the Unemployment tax break refund amount??

Q. How much is the Unemployment tax break refund amount?

A. There is no set amount. It depends on the complexity of your tax return.   The simple answer is $10,200 times your marginal tax bracket, e.g. $10,200 x 12% = $1224.  But taxes aren't simple. 

 

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. 

 

Q. When will I get the additional refund?

A.  It depends on the complexity of your return.  The IRS began sending out refunds May 14 for the simpler returns (single taxpayers who had the simplest tax returns, such as those filed by taxpayers who did not claim children or any refundable tax credits). 

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

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