Unemployment

[Scottishkabe]

I received $17000 in unemployment income. When I filed my taxes it says I owe $1700. I didn’t amend my taxes. Should I or is that truly what I owe?

[xmasbaby0]

You have not provided enough information.   Was the unemployment your ONLY income---or did you have other income?   What is your filing status?   When did you prepare your tax return?   Was tax withheld from your unemployment?    Did you claim any dependents?

[RossP88]

Hi! I am a TurboTax Live CPA. Since March our software incorporates the 10,200 dollar unemployment exemption. If you did not file then it would be included in the balance due or refund that you see. If you filed prior to the announcement of the exemption then you may be receiving the taxes you paid on up to 10,200 dollars of taxable income.  

[drc845443]

Good afternoon,

You did not indicate for me when you filed your taxes.  If you filed your taxes early during the tax season before the tax law had been changed to exclude the $10,200 of unemployment income from income subject to tax, then you may have paid tax on your unemployment income.

If the unemployment income was your only income, then the IRS will adjust your tax return and will send you a check/deposit for the additional refund. If the adjustment to the unemployment income would result in other credits that you had previously not been entitled to, then I would recommend that you amend your tax return to claim the additional refund.

Here are some useful resources that you may want to read through to consider whether you need to amend your tax return. Please also take into account your state's handling of the change in tax law excluding the $10,200 of unemployment income:

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

https://www.cnet.com/news/havent-got-your-tax-refund-yet-what-to-do-if-your-irs-money-is-delayed/

https://ttlc.intuit.com/community/state-taxes/help/do-i-need-to-amend-my-state-return/00/2134732#:~:....

Please note that the IRS is experiencing a significant backlog with the processing and adjustment of returns.