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Level 3
posted Mar 28, 2023 11:55:28 AM

Random check in the mail from IRS? "Lookback" Rule?

Well, I am really confused here, I was on unemployment in 2020 due to the pandemic, and I filed a return because of that law, "The law waived federal tax on up to $10,200 of unemployment benefits per person", and I got a refund of around $1200, that was about two or so years ago, just today I looked on informed delivery and noticed a piece of mail from IRS, waited for the mail to arrive and I opened the letter, and to my surprise, it was a check? 

 

The date on the check is "03 24 23" and it came from Kansas City, MO.

 

and at the bottom, it has "12/2020" TAX REFUND 30

                                              INT $ 434.82

 

I was shocked, to say the least, I then searched on google to see if I was unaware of any rebates/credits, or anything like that, and I came a crossed the "Lookback" Rule, which basically states if the taxpayer lost a job due to the pandemic and was on unemployment in 2020 which I was, that, "if you earned more in 2019, you can “lookback” to use your 2019 income when claiming the EITC on your taxes? I never knew that rule existed. So I know I didn't do anything to initiate this, did they automatically do it for me?

 

Or am I missing something here?

 

Thanks! 

0 5 2246
5 Replies
Expert Alumni
Mar 28, 2023 12:08:03 PM

The payment you received from the IRS is for interest on your 2020 tax refund.  You will need to report that as interest income on your 2023 tax return.  

Level 3
Mar 28, 2023 12:09:51 PM

The refund was for a little over $5000.

Expert Alumni
Mar 28, 2023 12:32:28 PM

You should receive a letter in the mail in the comming days explaining what the refund was for.

New Member
May 16, 2023 10:14:19 AM

Hello. Did you cash it? I got the same check for amount $173. But I never received unemployment,  so I dont know what it's for. I'm nervous to cash/deposit it, lol

Level 15
May 16, 2023 10:25:23 AM

What does it say at the bottom like on the other person's check?  INT is for interest the IRS is paying you.