How to Track IRS Unemployment Refund

Typically, after a taxpayer files their tax return, it takes about three weeks for the Internal Revenue Service (IRS) to make unemployment tax returns. But in 2021, this refund could take a little longer to arrive due to the pandemic. If you’ve come this far wanting to know when your money will be collected, then you’ll want to know how to track your unemployment refund from the IRS.

According to the IRS itself, will begin issuing 2020 unemployment insurance tax refunds to some taxpayers the week beginning May 17, 2021. Refunds will be sent on an ongoing basis and the process could take into the summer. Let’s now look at the details of this particular return stage and what you can do to track your IRS refund.

How to Track IRS Unemployment Refund

Do you qualify for unemployment reimbursement?

Unemployment insurance benefits usually count as taxable income. However, the American Rescue Plan (ARP), signed into law by President Joe Biden in March 2021, excluded unemployment insurance benefits of up to $10,200 from taxable income for 2020.

Since the ARP was approved in March, many taxpayers had already paid taxes. So, the IRS has identified more than 10 million people who filed their tax returns and that they might qualify for a refund or a reduced balance on their tax bill.

The exemption applies up to $10,200 in unemployment insurance for individual filers and couples who earned less than a modified adjusted gross income (MAGI) of $150,000 in 2020. If both spouses collected unemployment benefits in 2020, tax relief goes up to $20,400 for married couples filing jointly.

Those who have obtained more than those figures for unemployment insurance, will still have to pay what corresponds to taxes above those amounts.

How to track your unemployment tax refund?

Taxpayers who overpaid don’t have to file an amended return or do anything, just wait for the money to arrive. Unfortunately, the Where’s My refund and Get My Payment online tools are not available to check the status of your unemployment tax refund.

If you’ve included your bank account information with your 2020 tax return, the IRS will reimburse you via direct deposit. Those who did not, will receive a paper check by mail to the address they have declared.

Something very important to keep in mind is that 30 days after the refund is sent, the IRS will send taxpayers a notice that explains the adjustments made. Keep this notification because it will serve you for future clarifications.

How much do you have to receive in your unemployment tax return?

Each taxpayer is a different case and will receive their return based on what they have earned. The IRS said it is reviewing and correcting the returns “to determine the correct taxable amount of unemployment compensation and taxes”. Not all taxpayers will receive more money, and they clarified that the revisions “could result in a refund, a reduced balance, or no change in tax.”

In the event that a person owes money to the Treasury, it is likely that they will not receive this additional refund, as reported by the IRS. The “Treasury Offset Program” gives the government the power to garnish tax refunds to collect on old debts, such as child obligations or student loans.

The Tax Service Office will send you a notice if any part of your refund is used to pay a debt. This notice will state the amount of the original refund and compensation. It will also include the name of the agency that received the payment and contact information so you can contact them if you think there has been an error. If you do not receive your return and you think there has been an error, you could dispute the compensation payment by contacting the agency receiving the compensation payment.

What about joint returns?

If your spouse has a debt with the IRS, you can claim some or all of a refund applied to that debt. In that case, you will need to file Form 8379 Assignment to Injured Spouse. Visit this website (in English) to learn more about it.

When will you receive your unemployment tax refund?

Although the IRS recommends filing taxes online, many people still file their return on paper. If that is your case, the waiting time could be longer. Single people who have filed “simpler” tax returns (those with no children or claimed tax credits or deductions) may be the first to receive unemployment tax refunds.

Then it will be the turn of the more complicated returns, which include married couples filing jointly and those who have filed a thorough return asking for tax credits and the like. Therefore, the IRS announced that they will work on refunds “until the end of summer”.

In the event that your payment is due to arrive by mail, you can find out the exact date you will receive it by using the USPS Informed Delivery tool.. With the help of this tool, you will be able to track all your correspondence, including the unemployment benefits refund check and the economic stimulus check.

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