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glloriasosa
New Member

Will I receive a refund if I received unemployment

 
2 Replies
OpeA1
Employee Tax Expert

Will I receive a refund if I received unemployment

Hello glloriasosa!

 

That will depend on a number of factors. please read below to determine the answer based on your situation.

 

How do I get a tax refund for my unemployment income?

 

For tax year 2020, As part of the American Rescue Plan, the first $10,200 worth of unemployment payments are now tax-free for a person with an annual modified adjusted gross income of less than $150,000.

 

This expanded tax relief begins this year, starting for taxpayers filing returns after January 1, 2020.  If you filed your tax return before the law was enacted then the IRS will automatically send the refund, if the adjustment did not affect other areas of your tax return. 

 

The IRS has been making adjustments on tax returns and issuing refunds.  If you have not received your refund yet, the IRS has said that they will be sending refunds throughout the summer which doesn’t officially end until September 22nd.  

Additional information can be found here: https://blog.turbotax.intuit.com/tax-news/am-i-eligible-for-the-new-unemployment-income-relief-49427... 

 

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

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rjs
Level 15
Level 15

Will I receive a refund if I received unemployment

You qualify for the unemployment exclusion if you report unemployment benefits as income on your 2020 tax return and your Adjusted Gross Income (AGI), not including unemployment, is less than $150,000.


You didn't say whether you have already filed your 2020 tax return. If you did not file your 2020 tax return yet, you will get the exclusion when you file. It will appear as a negative amount on Schedule 1 line 8, with the abbreviation UCE on the dotted line to the left of the amount. TurboTax will give you the exclusion automatically. You do not have to do anything to get it. Just enter your Form 1099-G, including the full amount of unemployment that you received.


If you already filed your 2020 tax return, and you did not get the unemployment exclusion on the tax return that you filed, the IRS will recalculate your tax return and send you an additional refund. It might take several months to get it. You will get the additional refund 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.

 

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