Unemployment

[CptReaper]

I was told I wouldn’t have to make changes to my taxes. Yet I have never received a refund. Would you know why ? 

[Donna F 77]

IRS is recalculating tax returns that included unemployment income prior to the law change.  It is possible that IRS has not processed your recalculation yet.  The information that IRS has provided states that they will be processing these recalculations throughout the summer.  You may want to view your transcript to see if it has possibly been processed, but not received yet.  Here's a link to set up an account to view your transcript:

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

[Sunny_Tax_Expert]

Hi CptReaper!

Knowing the difference between a supplemental refund and regular income tax refund is key to understanding your 2020 tax situation!

Those who paid taxes on 2020 unemployment benefits can expect a “supplemental” refund in September 2021.  The reason for this?  The first 10,200 of 2020 unemployment benefits (20,400 for married couples filing jointly), is considered nontaxable due to the American Rescue Plan passed in March!  This summer the IRS began making adjustments to 2020 filings and issuing refunds.  If you receive a supplemental refund it should be in addition to any regular tax refund you receive from your 2020 return, discussed below:

Alternatively, a tax refund is simply a return of withholding overpayment.  You can find this amount by reviewing line 35a of your 2020 form 1040, U.S. Individual Income Tax Return.