What to keep in mind about your unemployment tax refunds

MURFREESBORO, Tenn. – Some Tennesseans might not receive their unemployment tax refunds until August, a Vanderbilt law expert said.

“Maybe even September,” Vanderbilt Law Professor and federal tax expert Beverly Moran said.

Some Tennesseans have started receiving their unemployment benefit tax refunds already. But many are wondering when their refund will hit their bank account, like Murfreesboro resident Bridget McKinney-Pleas.

She and her husband filed their taxes back in February. Her husband was on unemployment, and she’s been hitting a wall trying to figure out when she’ll get her refund.

“It’s just like a waiting game pretty much at this point,” Moran said.

The IRS says it started paying out refunds in May, with the simplest returns being issued first -- like single taxpayers. More complex returns could take until the end of the summer.

But there’s no breakdown with the exact timeline.

FOX17 News Reporter Rachel Tiede reached out to the IRS Friday, seeing if someone could do an interview to help clarify people’s confusion.

They said no one was available, but sent links to the IRS website: New Exclusion of up to $10,200 of Unemployment Compensation & 2020 Unemployment Compensation Exclusion FAQs & IRS begins correcting tax returns for unemployment compensation income exclusion; periodic payments to be made May through summer

Moran said the IRS is overwhelmed, and doesn’t have the resources.

She said there was 10 million people who filed their taxes before the American Rescue Plan went into effect giving people this refund. Now, it’s a process of figuring out who in that 10 million qualifies.

“People who can identify themselves can attempt to contact the IRS, but those who have us who have attempted to contact the IRS know how long you can stay on the phone,” Moran said. “It can be very disheartening.”

McKinney-Pleas said she hopes that money comes soon as her family, and millions of others, battle back from the effects of the pandemic.

“I just hope that we get somewhere soon,” McKinney-Pleas said. “I hope we get somewhere soon with it.”