Millions of unemployment refunds in July: IRS calendar, transcripts and more

The average IRS refund for taxpayers who have paid too much tax on unemployment compensation is $ 1,265.

Angela Lang / CNET

If you are still waiting for your unemployment benefit tax refund from last year where you overpaid, it may come sooner than you think. In fact, that extra IRS money could be in your bank account or your mailbox this week. the the tax agency announced it sent another batch of refunds to nearly 4 million people last week – direct deposits were made on July 14 and paper checks were mailed on July 16. However, many taxpayers who are waiting for their money still feel in the dark and express their anguish through online platforms.

The March US bailout made first $ 10,200 in unemployment benefits in 2020 – or $ 20,400 for married couples declaring jointly – non-taxable income. About 13 million taxpayers were potentially eligible for an adjustment and refund because they overpaid when they filed their taxes before the bill was passed. The average reimbursement is $ 1,265, the IRS said, but you could get more or less, depending on your income and other factors.

An IRS bank transaction code TREAS 310 could mean that your tax return has been adjusted and your refund has been filed. (By the way, if you’re a parent, that could also mean you got your first payment of the child tax credit this week.) Read on if you want to know how to access your tax slip for clues on the status of your refund. For more unemployment news, see which states are ending the $ 300 weekly bonus. We can also tell you how your child tax credit could affect your taxes in 2022. We’ve updated this story.

Ten Important Facts About IRS Refunds on Unemployment Benefits

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.

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. According to a forum and another discussion platform on Twitter, some taxpayers who reported being the head of a household or married with dependents began receiving their money from the IRS in early July. Others appear to be receiving updates on their transcripts with the dates of July 14 or July 26.

On July 13, the IRS announced it was sending an additional 4 million payments by direct deposit and paper check.

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, 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.
  • 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 sent 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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Find your tax slip to see your unemployment refund

IRS says eligible people should have received Form 1099-G from their national unemployment agency showing in Box 1 the total unemployment benefits paid in 2020. (If you haven’t, you must 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 method of knowing if a refund has been issued 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 do 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 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.

Details we are waiting to hear on unemployment reimbursements

The IRS has provided only limited information on its website regarding taxes and unemployment benefits. We’re still not sure exactly about the payment schedule (they’re a bit sporadic), which banks get direct deposits earlier, or how to contact the IRS if there’s a problem with your tax relief 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 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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