Where’s My Unemployment Refund

Millions Still In Line For Unemployment Tax Refunds

Since May, the IRS has issued more than 8.7 million unemployment compensation tax refunds totaling … $10 billion. More than 4 million taxpayers are still in line.

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The Internal Revenue Service is delivering a fourth round of special tax refunds this week to 1.5 million taxpayers who paid taxes on unemployment benefits when they filed their 2020 tax returns. For this round, the average refund is $1,686; direct deposit refunds started going out Wednesday, and paper checks today.

Still waiting for your refund? An estimated 13 million taxpayers are due unemployment compensation tax refunds. Since May, the IRS has issued more than 8.7 million unemployment compensation tax refunds totaling $10 billion. That means more than 4 million taxpayers are still in line.

Why the special unemployment benefits tax refunds? In the March 11th Covid-relief American Rescue Plan, Congress made up to $10,200 of 2020 unemployment benefits nontaxable for individuals and married couples whose modified adjusted gross income was less than $150,000. Generally, unemployment benefits are taxable, including basic state benefits as well as the extra $600 weekly CARES Act federal pandemic benefits. The unemployment tax break was welcome news to many folks. The problem: A lot of taxpayers already had filed their 2020 tax return before Congress put in the retroactive tax break. Thats made things messy.

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How To Track Your Refund And Review Your Tax Transcript

The first way to get clues about your refund is to try the IRS online tracker applications: The;Where’s My Refund;tool can be accessed here. If you filed an amended return, you can check the;Amended Return Status tool.;

If those tools don’t provide information on the status of your unemployment tax refund, another way to see if the IRS processed your refund is by viewing your tax records online. You can also request a copy of your transcript by mail or through the IRS’ automated phone service by calling 1-800-908-9946.;

Here’s how to check your tax transcript online:

1. Visit IRS.gov and log in to your account. If you haven’t opened an account with the IRS, this will take some time as you’ll have to take multiple steps to confirm your identity.

2. Once logged in to your account, you’ll see the Account Home page. Click;View Tax Records.

3. On the next page, click the Get Transcript button.

4. Here you’ll see a drop-down menu asking the reason you need a transcript. Select Federal Tax and leave the Customer File Number field empty. Click the Go button.

5. The following page will show a Return Transcript, Records of Account Transcript, Account Transcript and Wage & IncomeTranscript;for the last four years. You’ll want the 2020 Account Transcript.;

6. This will open a PDF of your transcript: Focus on the Transactions section. What you’re looking for is an entry listed as Refund issued, and it should have a date in late May or June.;

Million Unemployment Refunds Are Coming: Irs Timeline Tax Transcripts And More

The IRS has sent more than 8.7 million unemployment tax refunds.;

Have you been waiting on your unemployment refund? If so, weve got good news for you: The IRS announced last week its disbursing another round of;1.5 million total refunds;via direct deposit and by paper check. Some are reporting on;social media;that theyve received IRS updates on their tax transcripts with pending refund dates in late July and early August. But;many other taxpayers;say they havent received any money or clues that its on the way.;

This is what we know. The;first $10,200 of 2020 jobless benefits, or $20,400 for married couples filing jointly, was made nontaxable income by the American Rescue Plan. Taxpayers who filed their returns before the bill was passed in March are now eligible for an adjustment and a possible refund, which the IRS is supposed to issue automatically sometime this summer. On average, taxpayers can expect to receive $1,686, though it could be more or less, depending on individual factors.;

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What If I Haven’t Filed A Tax Return

TAXPAYERS had until May 17 to file an extension if they needed more time to submit their returns.

If you didnt file a tax return or an extension, but should have, you need to take action – or the penalties you face may increase.

If you file your return over 60 days late, youll have to pay a $435 fine or 100% of the tax you owe – whichever is less.

However, there is no penalty for filing a late return after the tax deadline if a refund is due, said the;IRS.

If you didn’t file and owe tax, file a return as soon as you can and pay as much as possible to reduce penalties and interest.

You won’t have to pay the penalties if you can show “reasonable cause” for the failure to do so on time – we explain how in our guide.

Nine Important Things To Know About The Unemployment Tax Break Irs Refunds

The IRS started sending refunds to taxpayers who received jobless benefits last year and paid taxes on the money. After some frustration with delays in the rollout, many single filers began seeing deposits in their checking accounts starting May 28, with 2.8 million refunds going out the first week of June. The IRS said the next set of refunds will go out in mid-June, but those payments have not yet been confirmed.

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What Else Is There To Know About Unemployment Tax Refunds

The IRS has provided some information on its website about;taxes and unemployment compensation. But were still unclear on the timeline for payments, which banks get direct deposits first or who to contact at the IRS if theres a problem with your refund.;

Some states, but not all, are adopting the unemployment exemption for 2020 state income tax returns. Because some get full tax unemployment benefits and others dont, you might have to do some digging to see if the unemployment tax break will apply to your state income taxes. This chart by the tax preparation service;H&R Block;could give some clues, along with this state-by-state guide by Kiplinger.;

Here is information about the child tax credit for up to $3,600 per child and details on;who qualifies.

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Unemployment Tax Refund Update: 10 Key Facts About Your Irs Money

Still waiting on your 2020 unemployment tax refund? Here’s how to view your tax transcript to get some clues about your money.

The IRS has sent 8.7 million unemployment compensation refunds so far.

If you paid taxes on your unemployment benefits from 2020 and filed your return before the American Rescue Plan was passed in March, you could be getting a refund this September. Here’s why: The;first $10,200 of 2020 jobless benefits, or $20,400 for married couples filing jointly, is considered nontaxable income. Since May, the IRS has been making adjustments on tax returns and issuing refunds averaging $1,686 to those who can claim that tax break.;

The frustrating thing is that those remaining payment dates are unclear. The last batch of refunds, which;went out to some 1.5 million taxpayers, was over a month ago. The IRS has not issued any news about a timeline for this month, except to say “summer,” which officially ends Sept. 22. While some have reported on social media that they have pending dates on their IRS tax transcripts,;many other taxpayers;say they’re fed up because they haven’t received any money or updates at all.;

What The 2020 Unemployment Tax Break Is About

The first thing to know is that refunds would only go to taxpayers who received jobless benefits last year and paid taxes on that money before the provision in the American Rescue Plan Act of 2021. The tax break is for those who earned less than $150,000 in;adjusted gross income;and for unemployment insurance received during 2020. At this stage, unemployment compensation received this calendar year will be fully taxable on 2021 tax returns.;

The $10,200 tax break is the amount of income exclusion for single filers,;not;the amount of the refund . The amount of the refund will vary per person depending on overall income, tax bracket and how much earnings came from unemployment benefits. So far, the refunds have averaged more than $1,600.;

However, not everyone will receive a refund. The IRS can seize the refund to cover a;past-due debt, such as unpaid federal or state taxes and child support. One way to know if a refund has been issued is to wait for the letter that the IRS is sending taxpayers whose returns are corrected. Those letters, issued within 30 days of the adjustment, will tell you if it resulted in a refund or if it was used to offset debt.;

If the IRS continues issuing refunds, they will go out as a direct deposit if you provided bank account information on your 2020 tax return. A direct deposit amount will likely show up as;IRS TREAS 310 TAX;REF. Otherwise, the refund will be mailed as a paper check to whatever address the IRS has on hand.;

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How To Get The Refund

If you are owed money and you’ve filed a tax return, the IRS will send you the money or use it to pay off other owed taxes automatically.

You typically don’t need to file an amended return in order to get this potential refund.

Instead, the IRS will adjust the tax return you’ve already submitted.

However, if you haven’t yet filed your tax return, you should report this reduction in unemployment income on your Form 1040.

The deadline to file your federal tax return was on May 17.

Victims Of Unemployment Fraud

Whenever the government starts sending checks, criminals will try to get their hands on some of that money. That’s certainly the case with the unemployment compensation tax refunds. The good news is that you won’t be punished if a crook uses your name and personal information to steal a tax refund from Uncle Sam.

So, for example, if you received an incorrect Form 1099-G for unemployment benefits that you didn’t receive, the IRS won’t adjust your tax return to add the unemployment compensation to your taxable income. You should still report the fraud to the state workforce agency that issued the incorrect form, though.

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Adjusting Returns For Unemployment

Generally, unemployment compensation is taxable. But in March, the American Rescue Plan waived taxes on the first $10,200 in unemployment income, or $20,400 for a couple who both claimed the benefit, for those who made less than $150,000 in adjusted gross income in 2020 in light of the coronavirus pandemic.

Passage of the law came after some people had already filed their 2020 returns, leaving those taxpayers wondering if they’d need to submit an amended return. The IRS later confirmed it would adjust returns and automatically send refunds to eligible taxpayers.

The first of those payments went out in May. The IRS has since sent roughly 8.7 million unemployment compensation refunds totaling some $10 billion.

The agency will continue to adjust returns and send refunds through the summer, it said. It started the readjustment process with the simplest returns and is now moving through more complex ones.

Most people do not have to take any action or file an amended return to get a refund if they overpaid on unemployment compensation, according to the IRS. Some taxpayers who had their 2020 returns readjusted may not get a refund because the IRS first applied their overpayment to outstanding taxes or other debts owed at the state or federal level.

When Will I Receive My Refund

You may check the status of your refund using self-service. ;There are two options to access your account information. Account Services or Guest Services

View more details on these options;

;;;;;; Note: Include the AGI/THR and tax year for which you are inquiring.

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What We Still Don’t Know About Unemployment Refunds

The IRS has only provided limited information on its website about;taxes and unemployment compensation. We’re still unclear on the future timeline for payments during the coming months, which banks get direct deposits first or who to contact at the IRS if there’s a problem with your tax break refund.;

Also, since some states fully tax unemployment benefits and others don’t, you might have to do some digging to see if the unemployment tax break will apply to your state income taxes. This chart by the tax preparation service;H&R Block;could give some clues, along with this state-by-state guide by Kiplinger.;

Here’s how to;track your tax return status and refund online;and what we know about contacting the IRS for;stimulus check problems. For more on stimulus payments and relief aid, here is information about the child tax credit for up to $3,600 per child and details on;who qualifies.

When Will I Get The Refund

Unemployment tax refunds started landing in bank accounts in May and will run through the summer, as the IRS processes the returns.

The first phase includes the simplest returns, made by single taxpayers who didn’t claim for children or any refundable tax credits.

More complicated ones may then take longer to process.

In mid-July, the IRS issued 4million refunds, of which those by direct deposit landed in bank accounts from July 14.

Meanwhile, households who receive the cash refund by paper check could expect this from July 16.

Another batch of payments were then sent out at the end of July, with direct deposits on July 28 and paper checks on July 30.

The IRS didn’t announce any payouts for August and is yet to reveal the upcoming refund schedule too.

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Timeline For Unemployment Tax Refunds

With the latest batch of payments in July, the IRS has now issued more than 8.7 million unemployment compensation refunds totaling over $10 billion. The;IRS announced it was doing the recalculations in phases, starting with single filers with no dependents and then for those who are married and filing jointly. The first batch of these supplemental refunds went to those with the least complicated returns in early summer, and batches are supposed to continue for more complicated returns, which could take longer to process.;

According to an igotmyrefund.com forum and another discussion on;, some taxpayers who filed as head of household or as married with dependents started receiving their IRS money in July or getting updates on their transcript with dates in August and September. No other official news from the IRS has been issued regarding payment schedule.;

How To Check Your Irs Transcript For Clues About Your Refund

The IRS says;eligible individuals should’ve received Form 1099-G from their state unemployment agency showing in Box 1 the total unemployment compensation paid in 2020. Some states may issue separate forms depending on the jobless benefits — for example, if you received federal pandemic unemployment assistance, or PUA.;

One way to know if a refund has been issued is to wait for the letter that the IRS is sending taxpayers whose returns are corrected. Those letters, issued within 30 days of the adjustment, will tell you if it resulted in a refund or if it was used to offset debt. The IRS says not to call the agency.;

You can try the IRS online tracker applications, aka the;Where’s My Refund;tool and the;Amended Return Status tool, but they may not provide information on the status of your unemployment tax refund.;

An immediate way to see if the IRS processed your refund is by viewing your tax records online. You can also request a copy of your transcript by mail or through the IRS’ automated phone service by calling 1-800-908-9946.;

Here’s how to check your tax transcript online:

1. Visit IRS.gov and log in to your account. If you haven’t opened an account with the IRS, this will take some time as you’ll have to take multiple steps to confirm your identity.

2. Once logged in to your account, you’ll see the Account Home page. Click;View Tax Records.

3. On the next page, click the Get Transcript button.

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