Hello BBH9
I understand you have unemployment compensation and had tax withheld from the unemployment compensation. When you prepare your tax return, your tax is based on all your taxable income and your tax is then reduced by all your withholdings. For example, if you also had wages in 2020, its quite possible the withholdings were not enough to cover the tax from the wages, but on your return all taxable income; wages and unemployment compensation is combined, and then your tax is reduced by all your withholdings, regardless of the source.
First, you'll want to review your return and confirm you included the unemployment compensation on your tax return. It would appear on your 2020 Schedule 1 Line 7. If it was included, and no exclusion on your 2020 Schedule 1 Line 8, then you do not need to amend, the IRS is automatically adjusting the returns.
The IRS has said that payments will continue "throughout the summer," which means that unless we hear something else, payments could continue through September 22nd.
You may request a tax transcript that would reflect if the IRS has made changes to your filed tax return. There are different types of transcripts, I recommend the Record of Account Transcript.
https://www.irs.gov/individuals/get-transcript
Here is a link to check the exclusion amount you would be eligible.
https://www.irs.gov/newsroom/2020-unemployment-compensation-exclusion-faqs-topic-b-calculating-the-e...
I hope you find this helpful!
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