A Detailed Guide : How to Check the Status of an Unemployment Tax Refund

In 2021, the American Rescue Plan Act provided tax relief for unemployment benefits received in 2020 by many individuals who were impacted by the COVID-19 pandemic. The legislation exempted the first $300 of unemployment benefits per week from federal income tax for households earning less than $150,000. This led to automatic refunds for people who had already filed their taxes in 2020 but had not yet received the relief.

However, checking the status of an unemployment tax refund can be a bit tricky. If you are wondering whether or not you qualify for this refund, when it might arrive, or how to track it, this guide will walk you through the necessary steps.

1. Understanding the Unemployment Tax Refund

Who Is Eligible for the Refund?

If you filed a 2020 federal tax return and received unemployment benefits, you may be eligible for an unemployment tax refund. The refund applies to those who:

Received unemployment benefits in 2020.
Filed their tax return for 2020 before the federal government made the tax exemption available.
Had adjusted gross income of less than $150,000.

The IRS automatically recalculated the taxes of eligible taxpayers and issued refunds. These refunds were typically processed between May 2021 and November 2021, but the process continued for some individuals into 2022 due to the complexity of the program.

What Is the Refund?

The refund essentially refunds the amount of taxes paid on the portion of unemployment benefits that were exempt from federal taxation. For example, if you paid federal income tax on $2,000 of unemployment benefits that were exempt under the new rules, the IRS would issue a refund for the tax overpayment.

2. When Should You Expect the Refund?

Timeline of Refunds

The IRS began issuing refunds in May 2021 for eligible individuals who filed their 2020 taxes before the unemployment relief measures were put in place. Refunds were sent out in multiple batches over several months, with some individuals receiving theirs in mid-2021 and others receiving their refunds later in the year or even in 2022.

If you filed your tax return after the IRS had already made the changes, you might have received an immediate refund without needing to wait for a manual adjustment.

Refund Processing Time

Refunds are typically issued via direct deposit or paper check, depending on how you filed your original tax return. Direct deposit is often faster than paper checks, which can take weeks to process and arrive.

The IRS has advised taxpayers to allow up to 8 weeks for the processing and delivery of their unemployment tax refunds. If you filed your tax return early in the year, you may have already received the refund by the time you check your status. However, for those who filed later or whose refunds were delayed, it’s important to know how to track your refund’s status.

3. How to Check the Status of Your Unemployment Tax Refund

If you’re still waiting for your unemployment tax refund, the IRS offers a few different ways to check its status.

Step 1: Use the IRS “Where’s My Refund?” Tool

The IRS provides an online tool called Where's My Refund? to help taxpayers check the status of their refunds. This tool is available on the official IRS website.

Here’s how to use it:

Go to the IRS Website: Visit the IRS Refund Status page.
Enter Your Information:
- Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN).
- Filing Status (Single, Married Filing Jointly, etc.).
- Exact Refund Amount from your most recent tax return.
Submit: Click the “Submit” button to check the status of your refund.

The system will provide you with a status update, which could show one of three statuses:

Refund Approved: The IRS has processed your refund, and it is scheduled to be sent out.
Refund Sent: Your refund has been issued and is on its way (either by direct deposit or check).
Return Received: The IRS has received your tax return but has not processed it yet.

If your refund status is “Refund Sent” and you opted for direct deposit, check your bank account. If it’s “Refund Approved,” keep an eye on your bank account or mailbox for a check.

Step 2: Call the IRS

If the online tool doesn’t provide the answers you're looking for or if you're facing difficulties, you can call the IRS directly. Keep in mind that the IRS is experiencing higher-than-normal call volumes, especially during the busy tax season, so wait times may be longer than usual.

IRS Phone Number: Call 1-800-829-1040 for refund status inquiries.
Operating Hours: Monday through Friday, 7 a.m. to 7 p.m. local time.

Step 3: Review IRS Notices

If the IRS issued a refund but you’re unsure of the status, they may have sent you a notice (Notice 1444-C or Notice 1444-D) confirming the refund amount. Check your mail to ensure you’ve received all relevant notices from the IRS. You should review these documents carefully for any instructions or next steps regarding your refund.

Step 4: Check Your IRS Online Account

In addition to the "Where’s My Refund?" tool, you can access your IRS online account to view your tax records. The online account allows you to:

View your account balance.
See the status of refunds.
Review your payment history.

You can log into your IRS online account by visiting the IRS Account page.

Step 5: Review Your Tax Filing Status

Double-check your 2020 tax filing to ensure that there were no mistakes or omissions that could have delayed your refund. For example, if you didn’t report all of your unemployment benefits or made an error with your filing status, it could delay processing. If you suspect an error, consider contacting a tax professional for assistance.

4. What to Do If Your Refund Hasn't Arrived

If you’ve been waiting for your unemployment tax refund and haven’t received it yet, consider the following possibilities:

1. Refund Delays

Refunds may be delayed due to a variety of reasons, including a backlog at the IRS, mistakes or missing information on your tax return, or problems with your direct deposit information. The IRS is still working through millions of refunds, so it’s not unusual for some taxpayers to experience delays.

2. Call the IRS or Visit a Local IRS Office

If your refund has not arrived and the status tool indicates that there are no updates, consider calling the IRS for more information. You can also visit a local IRS office for in-person assistance if you are having trouble getting through by phone.

3. IRS Errors

In some cases, the IRS may have made an error or encountered an issue that delayed the refund process. If this happens, the IRS should notify you via a letter. You can resolve these issues by responding to the IRS’s instructions.

4. Tax Professional Assistance

If you are still unable to resolve the issue, a tax professional can assist in tracking down your refund or addressing potential issues with your return.

5. When to Expect a Refund

Generally, you should expect your unemployment tax refund within 8 weeks of filing your taxes. However, this can vary depending on when you filed, how you filed, and whether the IRS needs additional information. If you filed early in the tax season and your refund status shows “Refund Sent,” check your bank account or mailbox.

For those filing later or encountering delays, it might take longer. If your refund was issued via paper check, it could take several weeks for it to arrive, especially during peak periods.

Conclusion

Checking the status of your unemployment tax refund in 2025 can be done easily through the IRS "Where’s My Refund?" tool, by calling the IRS, or by checking your IRS online account. While most refunds are processed quickly, delays can occur due to various factors. If you’ve been waiting for your refund for a long time, make sure to double-check your filing status, call the IRS, or contact a tax professional for assistance. By staying proactive, you can ensure you receive the refund you’re entitled to in a timely manner.