When is the next tax refund for unemployment benefits? What to Know About IRS Money

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The IRS automatically adjusts the 2020 tax returns for unemployment tax relief and issues letters with the amount.

Angela Lang / CNET

Since March American rescue plan do it first $ 10,200 in unemployment benefits Tax-exempt ($ 20,400 for married couples filing jointly), taxpayers who collected UI last year could owe a federal refund. Some 13 million Americans who paid taxes on these benefits before the law came into effect could get a large chunk of the money back. Regarding payment tracking, we’ll show you a way to view your tax information online.

The amount of refund each person receives will vary (if someone owes taxes or other debts, the amount could be applied to cover those outstanding balances). So the question is, when? Single taxpayers with no dependents should have seen the first batch of refunds at the end of last month. The second batch is expected around now (the IRS said mid-June). Refunds are expected to arrive later in the summer for married couples and dependents.

Regarding the other unemployment news, half of the US states have reduced the $ 300 weekly bonus and some offer return to work bonuses. If you are a parent expecting your first child tax credit payment on July 15, calculate how much you could get for your family and three ways to find out if you qualifyincluding a new IRS letter. We will update this story as the IRS releases more information.

9 details on tax relief and unemployment refunds

The IRS has already started sending refunds to taxpayers who received unemployment benefits last year and paid taxes on the money. After some frustration with the delays in deployment, many individual filers began to see deposits in their checking accounts from May 28, with 2.8 million repayments made in the first week of June. The IRS said the next round of refunds would come out in mid-June.

Here’s what you need to know:

  • The tax break is for those who earned less than $ 150,000 in adjusted gross income.
  • The amount of $ 10,200 is the income exclusion amount for single tax filers, do not the amount of the reimbursement. The amount of reimbursement will vary per person depending on overall income, tax bracket and amount of income from unemployment benefits.
  • Not everyone will be reimbursed. The IRS can seize the refund to cover a overdue debt, such as unpaid federal or state taxes and child support.
  • Refunds have started to come out in May and will be released in batches throughout the summer as the agency evaluates tax returns. More complicated returns may take longer to process.
  • the The IRS performs the recalculations in two phases, starting with single filers who qualify for tax relief of up to $ 10,200. It will then adjust returns for married taxpayers filing jointly who are eligible for tax relief of up to $ 20,400.
  • If the IRS determines that you are entitled to a refund on unemployment tax relief, it will automatically send a check.
  • You no need to file an amended return to request the exemption. (Here’s how track the status of your tax return and reimburse online.) Some who have used tax software like TurboTax have reported seeing their refund amount change due to the unemployment refund, although they haven’t seen a check yet.
  • Refunds will be issued as a direct deposit if you provided 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 notice explaining the corrections within 30 days of the correction.


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How to check your tax refund status online

IRS says eligible people should have received Form 1099-G from their national unemployment agency showing in Box 1 the total unemployment benefits paid in 2020 (if you haven’t, you must apply for one online) . Some states may issue separate forms based on unemployment benefits – for example, if you have received Federal Pandemic Unemployment Assistance (PUA).

IRS online applications, such as the Where is my refund the tool and the Return Status Tool Changed, will likely not provide information on the status of your unemployment tax refund. The IRS also says not to call the agency.

As far as we know, the easiest way to find out when the IRS processed your refund (and for what amount) is to look at your tax slip. Here’s how to find it:

1. Visit IRS.gov and log into your account. If you haven’t opened an account with the IRS, it will take some time as you will need to take several steps to confirm your identity.

2. Once logged into your account, you will see the Account Home page. Click on View tax records.

3. On the next page, click on the Get the transcript button.

4. Here you will see a drop-down menu asking why you need a transcript. To select Federal tax and leave it Client file number empty field. Click it Go button.

5. The next page will show your Restore the transcription, Account statement statements, Account transcription and Salary and income Transcription for the past four years. You will want it 2020 account transcription.

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

If you don’t have it, it probably means the IRS hasn’t obtained your return yet.

Some questions still unanswered

The IRS has provided information on its website regarding taxes and unemployment benefits. We still don’t know how to contact the IRS if there is a problem with your tax relief refund. If a refund has been issued, you should expect to receive a letter from the IRS within 30 days of the adjustment, which will let you know if it resulted in a refund or if it was used to offset a claim. debt.

Here’s what we know about how to contact the IRS for dunning control issues. To learn more about stimulus payments and emergency aid, here is information on child tax credit up to $ 3,600 per child and details on who qualifies.

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