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Jarwood11
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Will I get a refund for unemployment taxes?

 
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2 Replies

Will I get a refund for unemployment taxes?

When did you file?

If you have filed early before the exclusion, the IRS will recalculate your return for the new 10,200 unemployment exemption for you. There is no need for taxpayers to file an amended return unless the calculations make the taxpayer newly eligible for additional federal credits and deductions not already included on the original tax return.

 

No way to track it.  Just keep waiting.  The IRS is sending them out in batches over the summer.

See IRS news July 13, 2021

https://www.irs.gov/newsroom/irs-readies-nearly-4-million-refunds-for-unemployment-compensation-over...

 

See IRS article May 14, 2021

https://www.irs.gov/newsroom/irs-begins-correcting-tax-returns-for-unemployment-compensation-income-...

rjs
Level 15
Level 15

Will I get a refund for unemployment taxes?

You will get an additional federal income tax refund for the unemployment exclusion if all of the following are true.

 

  • You reported unemployment benefits as income on your 2020 tax return, on Schedule 1 line 7.
  • You did not get the unemployment exclusion on the 2020 tax return that you filed. The unemployment exclusion would appear as a negative amount on Schedule 1 line 8, with the abbreviation UCE on the dotted line to the left of the amount.
  • Your tax on Form 1040 line 16 is not zero.
  • Your Adjusted Gross Income (AGI), not including unemployment, is less than $150,000. In other words, Form 1040 line 11 minus Schedule 1 line 7 is less than $150,000.

 

If all four of those conditions are true, The IRS will recalculate your tax return and send you the additional refund. It might be a couple of months before you get it.


For more details see the IRS announcements that VolvoGirl referenced, and the following FAQ.


2020 Unemployment Compensation Exclusion FAQs

 

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