Unemployment Refund

[Meliessa1]

I called the IRS today to find out why I haven't received my refund on the Unemployment Tax. I was told I will not receive one because the Earned Income Credit ate up my refund. How is that even possible?  I had taxes taken out of my unemployment and of my paychecks. I am kind of lost as he said you won't get back the amount of taxes taken out on your unemployment its based on overall taxes paid.  Got to love the government!

[OpeA1]

Hello Meliessa1!

Please go to the link below and request your online transcript. The best way to know how the IRS calculated your return is to look at the transcript they provide.

Link: https://www.irs.gov/individuals/get-transcript 

[Meliessa1]

I did it says zero that is why I called the IRS

[Dosiesmith]

I was told by turbo tax I was getting a refund on my federal unemployment taxes but have not gotten any thing since then which was about 3 or so months ago 

[OpeA1]

I am sorry it is taking so long for the IRS to get back to you regarding your refund. Unfortunately, we have no control over when they send the refunds out.

Here is some more help:

How do I get a tax refund for my unemployment income?

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...