1.5 million unemployment tax refunds are coming. Here’s the latest

The IRS plans to ship $1.5 million funds quickly. 

Angela Lang/CNET

Good information! The IRS introduced final week that it is disbursing one other spherical of 1.5 million refunds through direct deposit and by paper test. Some individuals on social media are reporting that they’ve acquired IRS updates from their tax transcripts. The clues confirmed that refunds could also be deposited between late July and early August. But many others say they have not acquired any cash or clues that it is on the manner. 

The first $10,200 of 2020 jobless benefits, or $20,400 for married {couples} submitting collectively, was made nontaxable revenue by the American Rescue Plan. Taxpayers who filed their returns earlier than the invoice was handed in March are now eligible for an adjustment and a potential refund. The IRS plans to ship the cash this summer time. Taxpayers can count on to obtain a median of $1,686 relying on their circumstances. 

Start by on the lookout for an IRS TREAS 310 transaction code in your financial institution assertion to see in case you acquired your deposit. Parents may look out for extra cash with the subsequent advance child tax credit payment being despatched Aug. 13. In the meantime, we’ll present you the best way to search for clues in your tax transcript about your refund. For extra on unemployment, try the latest on $300 weekly bonus payments. And here is how the advance baby tax credit score funds could affect your taxes in 2022. This story will get common updates.

What’s the most up-to-date replace on IRS unemployment refunds?

As of this week with the fourth batch of funds, the IRS has now issued greater than 8.7 million unemployment compensation refunds totaling over $10 billion. In late May, the IRS began sending refunds to taxpayers who acquired jobless advantages in 2020 and paid taxes on that cash earlier than the American Rescue Plan went into impact. That legislation waived taxes on as much as $10,200 in unemployment insurance coverage advantages for people incomes lower than $150,000 a yr.

The first batch of those supplemental refunds went to these with the least sophisticated returns (single taxpayers with no dependents), and batches are alleged to proceed all through the summer time for extra sophisticated returns. On July 13, the IRS stated it despatched out 4 million extra funds through direct deposit and paper test, and one other 1.5 million went out beginning July 28. According to an igotmyrefund.com forum and one other dialogue on Twitter, some taxpayers who filed as head of family or as married with dependents began receiving their IRS cash in July or getting updates on their transcript with dates in the coming weeks. 

Here’s a fast recap of what we all know:

  • The tax break is just for individuals who earned lower than $150,000 in adjusted gross income and for unemployment insurance coverage acquired throughout the pandemic in 2020. 
  • The $10,200 is the quantity of revenue exclusion for single filers, not the quantity of the refund. The quantity of the refund will range per particular person relying on general revenue, tax bracket and the way a lot earnings got here from unemployment advantages.
  • Most taxpayers don’t need to file an amended return to say the exemption. But in case you assume you are now eligible for deductions or credit based mostly on an adjustment, test the recent IRS release for the record of who ought to file an amended return. 
  • If the IRS determines you are owed a refund on the unemployment tax break, it can robotically appropriate your return and ship a refund with none extra motion out of your finish. 
  • Not everybody will obtain a refund. The IRS can seize the refund to cowl a past-due debt, reminiscent of unpaid federal or state taxes and baby help. 
  • Refunds started going out in May and can exit in batches by way of the summer time as the company evaluates tax returns. More sophisticated returns may take longer to course of.
  • The IRS is doing the recalculations in phases, beginning with single filers who are eligible for the up-to-$10,200 tax break. It will then modify returns for these taxpayers who are married and submitting collectively, who are eligible for the up-to-$20,400 tax break.
  • Refunds will exit as a direct deposit in case you offered checking account data in your 2020 tax return. A direct deposit quantity will seemingly present up as “IRS TREAS 310 TAX REF.” Otherwise, the refund might be mailed as a paper test to the handle the IRS has readily available.
  • The IRS will ship you a discover explaining the corrections inside 30 days of when a correction is made.
  • Some states, however not all, are adopting the unemployment exemption for 2020 state revenue tax returns. 

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Your tax questions answered in 3 minutes


How can I see my unemployment refund on my tax transcript?

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. (If you didn’t, you should request one online.) Some states may issue separate forms depending on the jobless benefits — for example, if you received federal pandemic unemployment assistance, or PUA. 

One method 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 (and for how much) 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 into 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 & Income Transcript 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. 

If you don’t have that, it likely means the IRS hasn’t gotten to your return yet. 


You can use the Where’s My Refund tool to track your tax refund online. 

Sarah Tew/CNET

Should I call the IRS for an update on my unemployment refund?

It’s best to track your refund using the Where’s My Refund tool (mentioned above). The IRS says that you can expect a delay if you mailed a paper tax return or had to respond to the IRS about your electronically filed tax return. The IRS makes it clear not to file a second return. If it’s been more than three weeks since you’ve gotten an update you should call. 

Keep in mind that the IRS has limited live assistance because they’re juggling the tax return backlog, delayed stimulus checks and child tax credit payments. Even though the chances of speaking with someone are slim, you can still call. Here’s the best number to call: 800-829-1040. 

What we don’t yet know about IRS unemployment tax 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 (they’re a bit sporadic), which banks get direct deposits first or who to contact at the IRS if there’s a problem with your tax break refund. 

Some taxpayers who have accessed their transcripts have reported seeing the tax code 290 along with “Additional Tax Assessed” and an amount. Since this code could be issued in a variety of instances, it’s best to consult the IRS or a tax professional. 

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.

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