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September 9, 2021
Question

unemployment tax return for taxes paid in 2020 will I receive a refund for that amount

  • September 9, 2021
  • 1 reply
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    1 reply

    September 9, 2021

    Good afternoon,

    The IRS will perform the recalculation of your taxes to adjust for the $10,200 exclusion, and if you are eligible for an additional refund, the IRS will process the refund and send to you.

     

    However, if, as a result of the adjustment to exclude the $10,200 you become entitled to other credits (such as earned income tax credit or child tax credit), then the IRS recommends that you amend your tax return to claim the additional refund. Please note that the IRS has a backlog and it is taking long for them to process these refunds. 

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

     

    You may also want to consider your state's position on the exclusion of the $10,200. If your state requires you to file an amended tax return to claim the additional refund, then I would recommend that you amend both your Federal and state returns to claim the refund. The link below shows how different states are handling the processing of additional refunds as a result of the unemployment exclusion:

    https://ttlc.intuit.com/community/state-taxes/help/do-i-need-to-amend-my-state-return/00/2134732#:~:text=Pennsylvania%20(PA)&text=Pennsylvania%20doesn't%20tax%20unemployment,of%20Revenue%20for%20more%20information.

     

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