Still waiting for $10,200 unemployment tax exemption - IRS transcript dated 8/20/21 shows no adjustment yet

Check if you got a letter from the IRS called a CP21 or CP22. They send those out when they make adjustments to your return. If you didn't get one, might be worth calling them (prepare to wait forever) or creating an account on the IRS website to check your notices there.

I was stuck in this exact situation! After weeks of trying to call the IRS with no luck, I tried claimyr.com to help reach NY unemployment to see if they could explain whats going on. Got a callback within an hour and the agent told me that I need to check with my tax preparer because the state had already sent the info to the IRS - talking to an agent got my $ unlocked so fast. They also gave me a special IRS number to call that wasnt the main line. Check them out: https://youtu.be/Rdqa1gKtxuE

i had a similar situation and i figured out the problem. look at line where it says "766 credit to your account" with the -$1,000 and -$1,800 amounts. Those look like they might be stimulus payments, not your unemployment tax adjustment. The unemployment adjustment should show as a separate 290 or 971 code with the amount or a 846 "refund issued" if they already sent it.

The IRS is massively backlogged on these unemployment tax adjustments. My cousin just got his last week and he filed in January! There's literally millions of returns they're trying to process. I'd give it another month before panicking.

Did you file jointly with a spouse? If so, your combined income might have put you over the threshold where they phase out the unemployment tax break. The benefit starts phasing out at $150k combined income.

OK so here's what's probably happening (I work in tax prep): From your transcript, it looks like you already got your refund of $4,690 on March 2 (see code 846). The IRS hasn't processed your unemployment adjustment yet. You need to look at how much of your AGI was from unemployment. If all $10,898 was unemployment, then about $10,200 of that should become non-taxable under the new law. But your taxable income already shows $0, so you might not get any additional refund. The IRS is processing these in batches by complexity. Single filers with simple returns went first, then married, and they're still working through more complicated situations. Here's what to do: 1. Calculate how much tax you actually paid on that unemployment income (if any) 2. If you think you're owed more, try calling the IRS at 1-800-829-1040 (good luck getting through) 3. Consider using a service like claimyr.com to help you reach them - it's what I recommend to clients who are stuck in limbo Hope this helps! Tax stuff is confusing even for professionals sometimes.

the ny unemployment tax break is such a mess... i filed in april and STILL haven't heard anything. IRS website is useless, phone lines are always busy, i'm about to just give up on ever getting my money 🤡

Your adjusted gross income (AGI) was $10,898 according to your transcript. The unemployment exclusion is $10,200. So only $698 would be taxable, and with the standard deduction you'd have zero taxable income anyway. This is why you're not getting an additional refund - you already owed zero tax.

Anybody else feel like the government creates these "helpful" programs but makes them impossible to actually use? Between ny unemployment issues and now this tax mess, i'm convinced they just want us to give up and go away.

have you tried checking the IRS 'Where's My Refund' tool online? Sometimes that shows info that's not on the transcript

If ya want real help and not reddit guesses, use claimyr.com to reach someone at the unemployment office who can actually look at your account. Then ask them to explain what was reported to the IRS. I wasted months trying to figure this out myself before I just bit the bullet and got someone on the phone who explained everything in 5 minutes.

This might be silly, but have you checked your bank account statements from the last few months? Sometimes the IRS sends these adjustments without any notice and they get deposited with a weird label that doesn't clearly say it's from the IRS. Worth a look!

LOL another day another person trying to navigate the nightmare that is ny unemployment and taxes. Welcome to the club, we have jackets and therapy sessions on Thursdays 😂

Based on what I'm seeing in your transcript, it looks like you might not be getting an additional refund because your tax situation already resulted in zero tax owed. With an AGI of $10,898 and only $698 potentially taxable after the $10,200 unemployment exclusion, plus the standard deduction, you'd still owe $0 in taxes. The IRS only sends additional refunds if you actually paid tax on the unemployment income that's now excluded. Since your transcript shows $0 taxable income originally, there's probably nothing more coming. It's frustrating when everyone talks about getting money back from this law change, but it really depends on your individual tax situation!

I went through the exact same confusion! Looking at your transcript, the key thing to understand is that your taxable income was already $0 before the unemployment tax exclusion. Even though $10,200 of your unemployment is now tax-free, it doesn't change your bottom line since you weren't paying tax on it anyway due to the standard deduction. The IRS only sends additional refunds if you actually paid tax on unemployment income that's now excluded. In your case, with such low overall income, you were already in the 0% tax bracket. I know it's disappointing when you hear about others getting refunds, but your transcript is actually showing everything is correct - no additional refund is coming because none is owed.

I'm dealing with a similar situation and your transcript actually tells the whole story! Looking at your numbers - AGI of $10,898 with $0 taxable income - you were already below the tax threshold before the unemployment exclusion even existed. The $10,200 exclusion only helps people who actually paid tax on their unemployment benefits. Since you had such low total income, you qualified for the standard deduction which brought your taxable income to zero anyway. It's frustrating because everyone talks about getting these unemployment refunds, but if you weren't paying tax on that income originally, there's nothing to refund. The IRS isn't processing your case because mathematically, you don't qualify for an additional refund. Your situation is actually resolved correctly - no action needed!