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IRS Now Sending $10,200 Refund To Millions For Unemployment Taxes. Will You Get The Tax Break Check?
IRS Now Sending $10,200 Refund To Millions For Unemployment Taxes. Will You Get The Tax Break Check?
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The IRS is now efunding thousands of dollars paid on unemployment checks in 2020. Here's what to know about the tax break.



Sarah Tew/CNET







Did you pay taxes on unemployment benefits you received when you filed your 2020 tax return? If you did, the IRS is now sending refund payments to nearly 10 million people who filed before the included in the  became law. Under that $1.9 trillion stimulus law, unemployment checks don't counted as earned income during the pandemic and you can't taxed on the money you received in 2020.

The IRS began sending the tax-break refunds to those who qualify last week and said it will continue to refund money through the summer as the and reviews taxes paid on unemployment benefits. In addition to the unemployment tax break, the March stimulus bill also extends the weekly , authorizes a (and ) and  to as much as .

Twenty-three million Americans filed for unemployment last year, according to the Bureau of Labor Statistics. Under , this included people who were laid off as well as gig workers, contractors and self-employed people who don't normally qualify for unemployment insurance. We'll explain the unemployment tax refund and the details we're still waiting to learn. Here's how to see if the IRS owes you and how to get a . This story has been updated with new information.

IRS unemployment tax refund: Six key things to know


With the unemployment refunds now going out to taxpayers, here's what you can expect.

  • If the IRS determines you are owed a refund on the tax break, it will automatically send a check.
  • the week of May 10 and will extend into the summer, as the IRS evaluated tax returns.


  • You do not need to . (Here's how to .)
  • Refunds will go out as a direct deposit if you provided bank account information on your 2020 tax return. 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 when a correction is made.


  • You will not be able to track the progress of your refund through the , the , the or another IRS portal.























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Unemployment tax refund info we're waiting to hear about


There is still something we don't know about the refunds. We've contacted the IRS for clarification:

  • How to contact the IRS if there's a problem with your refund. (Here's what we know about contacting the IRS about .)

"This new clarification from the IRS is good news for the millions of taxpayers impacted, but may still be confusing," said Mark Steber, chief tax officer for Jackson Hewitt. Steber suggested checking with a tax professional once you receive your automatic refund to make sure the IRS sent the right amount.

For more details, here are seven ways to get , everything about the and what to know about the .























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