Unemployment Tax refunds are expected to come out sometime this month. This is the money refunded to people who overpaid their taxes despite the $10,200 unemployment benefit as nontaxable income. Here is the timeline for delivery and how to track your money online.
You might have overpaid your taxes last year. The government is offering a few benefits, especially for taxes, for individuals who recently lost their income and suffered in this challenging time of the pandemic.
On March 11, the American Rescue plan enacted a $10,200 unemployment compensation for eligible individuals and families. This means that $10,200 of the money you receive, especially from financial aid programs like stimulus checks, is nontaxable income and should be delivered directly to you and your family.
If any amount of this money was taxed, IRS delivers the refunds to you sometime soon.
Tax Refund for Unemployment
Cnet reported that the IRS is sending out refunds and jobless benefit money due for last year. Many are feeling frustrated by the delays, but after the long wait, the money finally seems to be rolling in the single filers' bank accounts since May 28. IRS shared a statement that the next set of refunds was scheduled to go out "mid-June." Unfortunately, with only a few days left for the month, this new wave of payments has not been confirmed yet.
Note, however, that you are eligible to tax refund for unemployment if your AGI (adjusted gross income) is less than $150,000.
Also, there are some important highlights to remember for the Unemployment Tax Refund:
- Tax refunds for unemployment could be seized to cover past due debts, unpaid federal or state taxes, child support, and other similar payments.
- Refunds will come in two phases, first for the single filers, then the married-filing-jointly taxpayers.
- IRS will automatically check and determine if you are owed a tax refund or unemployment tax.
- Refunds would be delivered by direct deposit to the bank provided or by mailed paper check on the address listed in the IRS database.
How to Track Your Money Through Your Online Tax Account
To track your Unemployment tax refunds, you need to view your tax transcript. This is how you could open it online.
- Visit the IRS website and log into your account. If you have not created one, take the time to sign up.
- Head to the "Account Home" page. Scroll and select the "View Tax Records."
- Click the "Get Transcript" button.
- On the drop-down menu asking for "the reason you need a Transcript," select the "Federal Tax" and leave the "Customer File Number" empty. Hit "Go."
- The page should provide your Return Transcript, Records of Account Transcript, Account Transcript, and Wage & Income Transcript for the last four years. Search for the "2020 Account Transcript"
- Files would be provided in PDF format. Review your "Transactions" details. One of these entries should list "Refund issued" with its corresponding delivery schedule for either late May or June.
IRS might be suffering from another unfortunate delay. If you don't find the information listed above, it likely means that the IRS has not processed your refund yet.
Related Article: Fourth Stimulus Check Update: Expert Analysis on Possible $2000 Payments, Online Petition