Question

Refund due because of previous payment of taxes on 2020 Unemployment Compensation

Forum|Forum|5 years ago
May 17, 2021
1 reply
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I know that the IRS is working on refunding taxes paid on the first $10,200 of 2020 unemployment compensation to those of us who filed taxes before the latest relief bill was passed. But, TurboTax is now showing that I should have a total refund of about $1,000 more than the amount of taxes withheld on my 1099-G for unemployment.

Will the IRS refund the full difference between what I received on my refund in early March and the amount that Turbox Tax is now showing? Or, do I need to file an amended return? Our total income (married, filing jointly) dropped almost $25K this year vs. each of the last two years, so I am wondering if that is now part of the difference between what TurboTax is showing as my refund amount vs. the taxes withheld on my1099-G thank you!

TurboTax Deluxe Online

DMarkM1

Possibly. Your new refund amount is a product of your taxable income decrease which in fact may be higher than what was withheld.

The tax on your taxable income is based on the tax bracket you fall into based on your total taxable income. The withholding amount is usually a flat rate 10% which again is usually lower than your tax bracket rate.

Wait for your return correction to process and compare that to the TurboTax corrections/updates.

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