Unemployment Tax Relief Refund: How to Check Your IRS Transcript for Clues

The IRS has so far sent 8.7 million unemployment benefit refunds.

Angela Lang / CNET

If you paid taxes on your unemployment benefits from 2020 and filed your return before the US bailout was passed in March, you may be entitled to a larger-than-expected refund. Here’s why: the first $ 10,200 in unemployment benefits in 2020, or $ 20,400 for married couples filing jointly, is considered non-taxable income. As of May, the IRS is making adjustments on tax returns and issuing refunds averaging $ 1,686 to those who qualify for this tax break.

What is frustrating is that the remaining payment dates are unclear. The last batch of refunds, which went to some 1.5 million taxpayers, that was over a month ago. The IRS hasn’t released any news on a calendar for this month except to say “summer,” which officially ends on September 22. While some have reported on social media that they have dates pending on their IRS transcripts, many other taxpayers say they are fed up because they haven’t received any money or updates at all.

If you’re still waiting for your money, we’ll walk you through how to access your online transcript for clues. We will tell you why look for a IRS VERY 310 transaction on your bank statement or a 846 code on your transcript. For more unemployment news, check out the latest news at $ 300 weekly bonus ends this weekend. And this is how the child tax credit could affect your taxes in 2022. This story is regularly updated.

What you need to know about unemployment tax refunds 2020

In late May, the IRS began reimbursing taxpayers who collected unemployment benefits in 2020 and paid taxes on that money before the US bailout went into effect. This law removed taxes up to $ 10,200 in unemployment insurance benefits for people earning less than $ 150,000 a year. With the last batch of payments in July, the IRS has now issued more than 8.7 million unemployment benefit refunds totaling more than $ 10 billion.

The first batch of these additional refunds went to those with the least complicated returns (single taxpayers with no dependents), and the batches are expected to continue throughout the summer for more complicated returns. On July 13, the IRS said it sent an additional 4 million payments by direct deposit and paper check, and an additional $ 1.5 million as of July 28. igotmyrefund.com forum and another discussion on TwitterSome taxpayers who reported being head of household or married with dependents started receiving their money from the IRS in July or receiving transcript updates with dates in August and September.

Here’s a quick recap of what we know:

  • The tax break only applies to those who earned less than $ 150,000 in adjusted gross income and for unemployment insurance collected during the pandemic in 2020.
  • The amount of $ 10,200 is the income exclusion amount for single tax filers, 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.
  • Most taxpayers no need to file an amended return to request the exemption. But if you think you are now eligible for deductions or credits based on an adjustment, see the recent IRS publication for the list of people who must file an amended return.
  • If the IRS determines that you are entitled to a refund on unemployment tax relief, it will automatically correct your return and send a refund without any further action on your part.
  • 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 IRS recalculates in phases, starting with single filers eligible for tax relief of up to $ 10,200. It will then adjust returns for married and jointly filing taxpayers, who are eligible for tax relief of up to $ 20,400.
  • Refunds will be made as a direct deposit if you provided bank account information on your 2020 tax return. A direct deposit amount will likely appear as IRS TREAS 310 TAX REF. 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.
  • Some states, but not all, are adopting the unemployment exemption for 2020 state income tax returns.


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How to Check the IRS Refund Status on Your Tax Statement

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 haven’t, you should apply for one. online.) Some states may issue separate forms based on unemployment benefits – for example, if you have received Federal Pandemic Unemployment Assistance, or 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. IRS says not call the agency.

You can try the IRS online tracking apps, aka the Where is my refund the tool and the Return status changed tool, but they may not provide information about the status of your unemployment tax refund.

One immediate way to see if the IRS has processed your refund (and for how much) is to view your tax records online. You can also request a copy of your transcript by mail or through the IRS automated telephone service by dialing 1-800-908-9946.

Here’s how to check your tax slip online:

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 display a 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.

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The average IRS refund for those who paid too much tax on unemployment benefits is $ 1,686.

Sarah Tew / CNET

Decoded IRS Tax Transcription Codes: 971, 846 and 776

Some taxpayers who have viewed their transcripts report having seen different tax codes, including 971 (when a notice has been issued), 846 (the date and amount of a refund) and 776 (the amount of additional interest owed by the IRS). Others see the code 290 as well as “Additional assessed tax” and an amount of $ 0.00. Since these codes can be issued in a variety of cases, including stimulus checks and other tax refunds or adjustments, it is best to consult with the IRS or a tax professional about your personalized transcript.

What to do if you are waiting for your unemployment reimbursement

It’s best to locate your tax slip or try to track your refund using the Where’s My Refund tool (mentioned above). The IRS says you can expect a delay if you filed a paper tax return or had to respond to the IRS about your electronically filed tax return. IRS specifies not to file a second return: You should call if more than three weeks have passed since your last update.

Keep in mind that the IRS has limited live assistance as the agency juggles the backlog of tax returns, delayed stimulus checks, and child tax credit payments. Even if the chances of speaking with someone are slim, you can still call. Here is the best number to call: 1-800-829-1040.

Unemployment tax relief details unknown

The IRS has provided only limited information on its website regarding taxes and unemployment benefits. We still don’t know exactly which banks will receive direct deposits first or who to contact the IRS with if there is a problem with your tax refund.

Also, since some states fully tax unemployment benefits and others do not, you may need to dig to see if the unemployment tax relief will apply to your state income taxes. This table by the tax preparation service H&R Block might give some clues, on top of that state-by-state guide by Kiplinger.

here’s how track the status of your tax return and reimburse online and what we know about contacting the IRS to 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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