Question

I overpaid in unemployment taxes in 2020

Forum|Forum|4 years ago
September 9, 2021
1 reply
0 views

Hello,

When should I expect my refund for the extra unemployment tax I paid in 2020 (based on the American Rescue Plan Act)? The IRS says that they are still sending payments, but I have no sign of when I will receive mine.

Thanks for your help.

C

conniem123

Hello claudiomr2002

I know it can be frustrating waiting for your additional refund due to the unemployment compensation exclusion.

First, you'll want to review your return and confirm you included the unemployment compensation on your tax return. It would appear on your 2020 Schedule 1 Line 7. If it was included, and no exclusion on your 2020 Schedule 1 Line 8, then you do not need to amend, the IRS is automatically adjusting the returns.

The IRS has said that payments will continue "throughout the summer," which means that unless we hear something else, payments could continue through September 22nd.

You may request a tax transcript that would reflect if the IRS has made changes to your filed tax return. There are different types of transcripts, I recommend the Record of Account Transcript.
https://www.irs.gov/individuals/get-transcript

Second, you can check on your eligibility and amount of exclusion. Here is a link to check the exclusion amount you would be eligible.
https://www.irs.gov/newsroom/2020-unemployment-compensation-exclusion-faqs-topic-b-calculating-the-exclusion

If you did not include the unemployment compensation on your tax return, then you would need to amend.
https://turbotax.intuit.com/tax-tips/amend-return/how-to-file-an-amended-return-with-the-irs/L6kO691J8

I hope you find this useful!

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"