IRS Unemployment Tax Refund?

[njrebel1978]

Originally Posted by Futuremauian

UPDATE: January 2022, My grandsons have never received the Unemployment Tax Refunds. Does anyone know if it will be possible to claim those refunds on the 2021 Tax Returns?

I found your answer. According to Forbes, the IRS is still processing those unemployment tax refunds.
They are expected to continue issuing those refunds into 2022. Therefore, don't do anything. They are still processing them. However, if you never received your 3rd Stimulus Payment issued March - May 2021, you CAN deduct that when filing taxes, which would be part of your tax refund. Here is the article regarding the Unemployment Tax Refunds.

https://www.forbes.com/sites/ashleae...2022-irs-says/

[lancers]

Still processing? Wow that is amazing. The fact that he got a letter some time back would concern me.

[njrebel1978]

Originally Posted by lancers

Still processing? Wow that is amazing. The fact that he got a letter some time back would concern me.

Yes, I would wait a little longer. Once the IRS states they processed ALL of the overpayment of unemployment tax refunds and they still didn't get it, then I would file an amended 2020 tax return deducting that tax overpayment from their AGI. You can do that on paper (Form 1040X) and send it in the regular mail. If they are uncomfortable doing it on their own, I am sure a visit to H&R Block would be helpful even though they will charge a fee. But give it til Spring at least.

Final thought: Make sure your grandchild checks their online bank accounts to make sure they didnt get the refund and just didnt notice. I also recommend opening an online account with the IRS, where you can check all the details of your tax situation (including all refund info).

[njrebel1978]

I would definitely have your grandsons open an online account with the IRS to check and see if they indeed were sent a refund check. If IRS sent one, but it was lost in the mail, they can request a replacement check. See link to recover lost IRS payment. Otherwise, wait til the spring and file an amended 2020 return.

https://www.irs.gov/faqs/irs-procedu...nd-inquiries-0

[lancers]

Originally Posted by njrebel1978

I would definitely have your grandsons open an online account with the IRS to check and see if they indeed were sent a refund check. If IRS sent one, but it was lost in the mail, they can request a replacement check. See link to recover lost IRS payment. Otherwise, wait til the spring and file an amended 2020 return.

https://www.irs.gov/faqs/irs-procedu...nd-inquiries-0

Good advice. I think something is up since they got a letter stating a payment was coming out.

[Futuremauian]

My own Unemployment tax refund came in the form of a paper check even though my taxes are always paid via direct deposit/withdrawal. I guess they will continue to wait.

The grandsons are going to Las Vegas over Superbowl weekend and planned to spend the money wisely, LOL.

Thanks to both of you who replied!

[topaz47]

Originally Posted by njrebel1978

I apologize if this is the wrong section to ask this, but is anyone still waiting for their unemployment tax refund by the Fed IRS who filed their taxes early? I know they are supposed to refund those who paid taxes on the first $10,200 of unemployment from 2020. However, I am still waiting for my refund. Anyone else in the same boat? I read not to file an amended return, but I cannot get through via phone either.

Try to get through to the IRS there are several numbers floating around. I filed taxed through an IRS website Online Taxes. I did not pay the tax owed as the following week the $10,200 exclusion went into effect. I was told that the IRS would automatically make the adjustment. Wrong!! I received a bill for 2020 taxes owed without the exclusion and had to pay almost $3K as I did not withhold taxes on UI. I also thought the IRS would make the adjustment based on the $10,200 exclusion but not so. I was instructed to file an amended return which I did, resulting in a refund due. IRS received my amended return Sept 2021 and I am still waiting. It could very well take up to a year. Yes, you should contact IRS as I assume you may need to file an amended return as I was instructed to do.

[njrebel1978]

Originally Posted by topaz47

Try to get through to the IRS there are several numbers floating around. I filed taxed through an IRS website Online Taxes. I did not pay the tax owed as the following week the $10,200 exclusion went into effect. I was told that the IRS would automatically make the adjustment. Wrong!! I received a bill for 2020 taxes owed without the exclusion and had to pay almost $3K as I did not withhold taxes on UI. I also thought the IRS would make the adjustment based on the $10,200 exclusion but not so. I was instructed to file an amended return which I did, resulting in a refund due. IRS received my amended return Sept 2021 and I am still waiting. It could very well take up to a year. Yes, you should contact IRS as I assume you may need to file an amended return as I was instructed to do.

Topaz, this post was from last year. I also received my refund via paper check last August. I feel bad for those still waiting on the IRS for theirs.