With the announcement of the 10200 unemployment tax break refund, a substantial sum goes toward taxpayers through tax refunds. Many are eager to see it arrive in their bank accounts without delay. However, delays are inevitable due to the IRS's current workload with tax refunds.

The introduction of the unemployment tax refund portal has allowed taxpayers to quickly and easily check their state tax refund status. This article shows you how to check the status of your unemployment tax refund and figure out when you'll get it.

How to Track the Status of Your Unemployment Tax Refund

How to Check the Status of an Unemployment Tax Refund

The easiest and quickest way to check state tax refund status is to use the IRS's Where's My Refund tool or the IRS2Go mobile app.

  1. Visit the IRS website and select "Get Your Refund Status" under the "Tools" tab.
  2. To proceed, you must input your Social Security number, filing status, and the precise refund amount stated in your tax return. 
  3. Lastly, click "Submit" to check the status of your refund.

You may also contact the IRS to check on the status of your refund. However, it might take a while to speak with a representative.

When to Expect Your Refund

The timing of your refund will depend on several factors, including how you filed your tax return (electronic filing or by mail), the method of payment (direct deposit or check), and the complexity of your return. The IRS typically issues most refunds within 21 days of receiving your tax return. 

You can check the status of your refund using the IRS refund status stimulus check. The system updates everything daily. However, e-filers may need to wait 24 hours after submitting their tax returns to see their status. If you filed your taxes using paper filing or by responding to an IRS Notice, you may experience longer delays.

Find Out if Your Tax Return Was Submitted Correctly

To confirm the submission status of your tax return, check whether your refund is in process, and find out the date of your refund deposit. You can use the "Where's My Refund?" tool on the IRS website. You can also confirm that the IRS received your tax return by checking your tax return filing status in your IRS account.

How to Claim an Unemployment Tax Refund

If you got unemployment benefits in 2020 and paid taxes on them before the $10200 unemployment tax break refund was created, there is nothing you need to do to file for an unemployment tax refund. The IRS will automatically recalculate the correct taxable amount of your unemployment compensation and refund any resulting overpayment of tax.

You must file an amended tax return to trigger a refund only if the recalculation makes you eligible for additional federal tax and deductions.

What Happens if You Forget to Claim the Refund

If you forget to claim a refund on your tax return, the IRS will perform the corrections and process any applicable refund due automatically. If you are eligible for certain credits or deductions after applying the special unemployment compensation exclusion.

The IRS will calculate payroll taxes and include them in any overpayment and tax refund due. However, if you know you can claim a deduction on your tax return, you may need to file an amended return to claim it.

Here is a video guide for convenience.


What to do if your tax refund is lower than expected

What to do if your tax refund is lower than expected?

If your IRS payment tax refund is lower than you expected, it may be because part or all of it was used to repay a debt you owe to a federal or state agency. Treasury Offset Program (TOP) carries out this tax refund offset. The TOP checks whether your name and taxpayer information match those in its debtor database and deducts the amount you owe from your IRS payment tax refund.

Contact the agency that claims you owe money if you suspect that they mistakenly made a deduction. You can also call the Treasury Offset Program at 1-800-304-3107 to find out which agency you need to contact.

How does the $10,200 unemployment tax break work?

The American Rescue Plan introduced the $10,200 unemployment tax break. This provision allows taxpayers who received unemployment benefits in 2020 to exclude up to $10,200 of those benefits from their taxable income.

Taxpayers who have already filed their tax returns and paid taxes on unemployment will get a refund. The IRS will automatically recalculate their tax returns and issue refunds for any overpayment of taxes.

If the exclusion adjustment results in an overpayment (refund), how will it be issued to me?

In case of overpayment (refund), the IRS will issue the refund as a direct deposit or a check. However, the taxpayer has to choose the method on their tax return. The tax authorities will issue the reimbursement to the account or address that the taxpayer provided when they filed their return.

If the exclusion adjustment results in a refund, will the IRS use the refund to pay (offset) any unpaid debts I may have?

Yes, the IRS (internal revenue service) may employ the refund tool to settle any outstanding bills. They do this by deducting the required sum from the refund. Afterward, they send the due account to the relevant government agency. They will send you a notice informing you of the offset if they use the refund to settle outstanding debts.

Final Thoughts on Checking Unemployment Refund with the IRS

The IRS is the quickest and easiest way on how to check the status of an unemployment tax refund. Enter your details on the IRS website, and you can stay up to date on the progress of your refund. The delays in refunds depend on various factors and the complexity of your returns.  

The IRS typically issues most refunds within 21 days of receiving tax returns. However, those filing by mail or responding to an IRS notice may experience longer delays. If you forget to claim a refund, the IRS will process any applicable refund due automatically.