Unemployment Tax Exemption

Hi,

I chose to have taxes taken out of my unemployment. I know everyone was exempt for 2020, due to pandemic. When will I receive the taxes I paid in for my unemployment.

Thank you

posted

Under the American Rescue Plan Act, the first $10,200 of unemployment income ($20,400 if married filing jointly) is exempt from federal tax if your modified adjusted gross income is less than $150,000. If you filed your 2020 return before ARPA was passed on March 11 and had MAGI less than the $150,000, you would be eligible to receive a refund of the federal taxes paid on that $10,200.

Depending on what state you live in, you may or may not have the same exclusion for state tax purposes.

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