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Where do I get my unemployment benefit back? What to know


If you expect a refund for receiving unemployment insurance while it was still taxable, your money may arrive soon.

Angela Lang/CNET

Two weeks have passed since the IRS announced it would begin sending refunds for 2020 unemployment benefits. While unemployment benefits are usually treated as taxable income, American rescue plan in March waived federal tax on up to $10,200 of those benefits per person (or up to $20,400 for married couples filing jointly). Therefore, those who filed their tax returns before the new rules went into effect overpaid and now owe money from the IRS.

Here’s the question: When will the refunds arrive to millions of waiting Americans? We know the IRS is still view and process tax returns and that repayments would begin in May and continue through the summer. The agency said some adjustments will result in a refund, while others will receive a reduced balance or no change at all.

We will continue to monitor the details surrounding the unemployment tax exemption. You may also want to learn more about the states that opt ​​out of: $300 Unemployment Benefit Bonus and other unemployment benefit programs as early as next month. If you are a parent, here are details about the enhanced child tax credit, how much you could get for your family and how to Upcoming IRS Child Tax Credit Portals. This story was recently updated with new information.

What you need to know about the unemployment tax refund

The IRS claims it started sending refunds to taxpayers who received unemployment benefits as early as last year. But those still waiting for checks have posted their frustration on Reddit and Twitter at the agency’s slow rollout and lack of transparency.

Here’s what to expect:

  • The tax break is for those who made less than $150,000 adjusted gross income.
  • Refunds began the week of May 10, according to the IRS, and will continue through the summer while the agency reviews tax returns. More complicated returns may take longer to process.
  • The IRS performs the recalculations in two phases, starting with single filers eligible for the tax break up to $10,200. It will then adjust the returns for those married taxpayers who jointly qualify for the tax benefit of up to $20,400.
  • If the IRS determines that you owe an unemployment tax refund, it will automatically send a check.
  • The IRS may seize the repayment to cover past-due debt, such as unpaid federal or state taxes and child support.
  • You do not have to submit an amended declaration to claim the exemption. (here’s how to) track your tax return status and refund online.) Some who used tax software like TurboTax said they’ve seen their refund amount change as a result of the unemployment refund, though they haven’t seen a check yet.
  • Refunds will be paid as direct deposit if you provided your bank account information on your 2020 tax return. Otherwise, the refund will be mailed as a paper check to the address the IRS has on hand.
  • The IRS will send you a message explaining the corrections within 30 days of a correction being made.
  • You cannot track the progress of your refund through the IRS Get My Payment tracker, the Where is my refund tool, the Changed Return Status tool, or another IRS portal.

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What we don’t know about unemployment tax refunds

The IRS has provided information on taxes and unemployment benefits on its website. We still don’t know how to contact the IRS if there is a problem with your tax credit refund. (Here’s What We Know About Contacting the IRS for) stimulus control problems.) We’ve reached out to the IRS for clarification.

For more information, you can find information about the child discount for up to $3,600 per child and who is eligible?.

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