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Lweizy52
Returning Member

Unemployment tax credit

I did not recieve form to file my unemployment with 2020 taxes. My question is if taxes were still taken out of my unemployment will i get that first 10,200 taxes back as refund?

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1 Best answer

Accepted Solutions
NateTheGrEAt
Employee Tax Expert

Unemployment tax credit

Hi Lweizy52,

 

Have you already filed your tax return for 2020? If you haven't I would try to obtain the 1099-G from the state that you received unemployment from, to be sure you report the unemployment correctly. If you enter the 1099-G when preparing your return with TurboTax, the software will automatically apply the 10,200 exclusion and give you credit for the withholding.

 

If you already filed, did you report your unemployment income or withholding on the return? I know you said you did not receive a form, but it wasn't clear to me whether you entered the information anyway. 

 

If you entered the correct info for your unemployment income and withholding, the IRS should apply the exclusion if you filed before March, and send you a refund of the prorated tax amount (the exclusion amount up to 10200 * your marginal tax rate, plus any changes to credit amounts that were applicable). 

 

If you didn't enter the unemployment info at all when you filed, then potentially you could owe more tax now, or have an additional refund coming, depending on how much unemployment you received, how much you had withheld and what your tax rate is.  But you would need to file an amended return to figure that out. The IRS does have the 1099 info from the state but it normally takes them a year or more to determine that income has been left off a return. 

 

I hope this helps! Please let us know if you have any further questions.

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3 Replies
NateTheGrEAt
Employee Tax Expert

Unemployment tax credit

Hi Lweizy52,

 

Have you already filed your tax return for 2020? If you haven't I would try to obtain the 1099-G from the state that you received unemployment from, to be sure you report the unemployment correctly. If you enter the 1099-G when preparing your return with TurboTax, the software will automatically apply the 10,200 exclusion and give you credit for the withholding.

 

If you already filed, did you report your unemployment income or withholding on the return? I know you said you did not receive a form, but it wasn't clear to me whether you entered the information anyway. 

 

If you entered the correct info for your unemployment income and withholding, the IRS should apply the exclusion if you filed before March, and send you a refund of the prorated tax amount (the exclusion amount up to 10200 * your marginal tax rate, plus any changes to credit amounts that were applicable). 

 

If you didn't enter the unemployment info at all when you filed, then potentially you could owe more tax now, or have an additional refund coming, depending on how much unemployment you received, how much you had withheld and what your tax rate is.  But you would need to file an amended return to figure that out. The IRS does have the 1099 info from the state but it normally takes them a year or more to determine that income has been left off a return. 

 

I hope this helps! Please let us know if you have any further questions.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
Lweizy52
Returning Member

Unemployment tax credit

Thank you so much this helps. i guess i will need to get my 1099 for state employment office.

Lweizy52
Returning Member

Unemployment tax credit

and amend my 2020 taxes.

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