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Home » Valentine's Day » Some workers should amend 2020 tax returns if still waiting for $1,189 unemployment tax refund

Some workers should amend 2020 tax returns if still waiting for $1,189 unemployment tax refund

Some workers are still waiting for that $1,189 unemployment tax refund they paid taxes on this year.

Around 430,000 refunds were sent out this week with an average worth of $1,189 per check.

Unemployment benefits are normally considered taxable income, but for the year 2020 the American Rescue Plan made the first $10,200 of unemployment tax free.

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This works for taxpayers earning less than $150,000. If you earn over that then you may not exclude any amount of unemployment benefits.

If filing a 1040-NR unemployment for your spouse cannot be excluded.

The exclusion should be reported separate from unemployment compensation.

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The IRS’ advice was to not amend a return but to wait for a refund. Some have done that and received around $1,600.

Others may have filled a form out wrong which is causing a delay.

How do I check my unemployment benefits for a tax refund?

The IRS offers an Unemployment Compensation Exclusion worksheet that can help you figure out how much to exclude.

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On the sheet taxpayers needed to enter UCE in the description field of line 8 but some forgot to do this. Double check your return.

If this happened, it may be better to just amend your return because the IRS will need to do a manual review of the whole return.

Some states consider income community property between a husband and wife, and this means you may be getting a bigger refund.

If this is the case, that means both parties can exclude $10,200 each.

States considered community property states are Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin.

Related: 413,000 families will be getting unemployment tax refunds worth $1,189, are you eligible?

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