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Meeshie73
New Member

Money back

I was told that I should be getting back money that I paid when receiving unemployment.  That they weren't supposed to take taxes out. 

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3 Replies

Money back

Only on the first 10,200 of Unemployment.  When did you file?

 

If you filed early before the exclusion, the IRS will recalculate your return for the new 10,200 unemployment exemption for you. There is no need for taxpayers to file an amended return unless the calculations make the taxpayer newly eligible for additional federal credits and deductions not already included on the original tax return.

 

No way to track it.  Just keep waiting.  The IRS is sending them out in batches over the summer.

See IRS news July 13, 2021

https://www.irs.gov/newsroom/irs-readies-nearly-4-million-refunds-for-unemployment-compensation-over...

 

 

OpeA1
Employee Tax Expert

Money back

Hello Meeshi73!

 

Yes, this is true on the first $10,200 of the amount you received.

 

For tax year 2020, As part of the American Rescue Plan, the first $10,200 worth of unemployment payments are now tax-free for a person with an annual modified adjusted gross income of less than $150,000. This expanded tax relief begins this year, starting for taxpayers filing returns after January 1, 2020.  If you filed your tax return before the law was enacted then the IRS will automatically send the refund, if the adjustment did not affect other areas of your tax return.  The IRS has been making adjustments on tax returns and issuing refunds.  If you have not received your refund yet, the IRS has said that they will be sending refunds throughout the summer which doesn’t officially end until September 22nd.  

Additional information can be found here: https://blog.turbotax.intuit.com/tax-news/am-i-eligible-for-the-new-unemployment-income-relief-49427... 

 

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

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Money back

They were supposed to take money out if you told them to take out withholding.  Then the tax law changed and people who had too much money withheld, or paid too much with their return are being refunded that money.  

Whether you will get money back depends on what you paid in, your tax status, and when you filed.  

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