A few weeks ago, the IRS sent an initial batch of 2.8 million refund checks to Americans who paid taxes on unemployment benefits collected in 2020. This means that some single taxpayers with no dependents would have due to receive refunds at the end of last month. Repayments are expected later in the summer for married couples and those with dependents, but what about the second installment scheduled for mid-June? The exact timeline is still unclear, but we can help you verify your tax bill online.
Refund payments are part of March, which treated the first $ 10,200 in unemployment benefits ($ 20,400 for married couples filing jointly) as non-taxable income. The IRS has identified some 13 million taxpayers who filed before the law came into effect and whose returns will be adjusted to receive some of the money. The amount each person receives will vary (if you owe taxes or other debts, the refund could be applied to cover any outstanding balances).
We will update this story as the IRS releases more information. As for other unemployment news, 26 U.S. states have reduced theand some offer . If you are a parent expecting your first payment on July 15, calculate for your family and including a new .
9 key facts about unemployment tax relief and IRS refunds
The IRS has 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 has said the next round of refunds will be made in “mid-June,” but those payments have yet to be confirmed.
Here’s what you need to know:
- The tax break is for those who earned less than $ 150,000 in .
- 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 past due debt, such as unpaid federal or state taxes and child support.
- Refunds began to flow in May and will be made in batches throughout the summer as the agency assesses the tax returns. More complicated returns may take longer to process.
- The IRS performs the recalculations in two phases, starting with single filers who are eligible 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 correct your return and send a check or deposit the payment into your bank account.
- 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. .
- You do not need to file an amended return to claim the exemption. (Here’s how .) 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.
- The IRS will send you a notice explaining the corrections within 30 days of the correction.
How to check the refund status through your online tax account
The IRS says eligible people should have received Form 1099-G from their state unemployment agency showing in Box 1 the total unemployment benefits paid in 2020 (if you didn’t, you should request one online). Some states may issue separate forms based on unemployment benefits – for example, if you have received Federal Pandemic Unemployment Assistance (PUA).
One way to know if a refund has been made is to wait for the letter the IRS sends to taxpayers whose returns are corrected. These letters, issued within 30 days of the adjustment, will tell you if it resulted in a repayment or if it was used to offset a debt. The IRS says not to call the agency.
IRS online applications, like the Where’s My Refund tool and the Amended Return Status tool, likely won’t provide information about the status of your unemployment tax refund. The only way to see if the IRS processed your refund online (and for how much) is to view your tax slip.
Here’s how to check online:
1. Visit IRS.gov and sign in to 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 since 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.
Many questions that have not yet been answered
The IRS has only provided some information on taxes and unemployment benefits on its website. We still don’t know exactly the payment schedule or how to contact the IRS if there is a problem with your tax relief refund.
Here’s what we know about how to contact the IRS for. To learn more about stimulus payments and emergency aid, here is information on and details on .