The IRS has started giving money to people who got unemployed last year. This is because the IRS said this Monday that 430,000 people are getting their money back.
It is a batch of tax refunds for people who paid taxes on the benefits, which were excluded from their income last year. The IRS says it’s because of the American Rescue Plan.
A new law will say that the first $10,200 of unemployment compensation you received in 2020 will not be taxed for people who earn less than $150,000.
It is estimated that the new round of refunds will amount to over $510 million.
The IRS has found 16 million people who may qualify for an adjustment because they received unemployment.
The agency has sent out 11.7 million tax refunds that are worth about $14.4 billion to people who got money from the government.
The IRS is trying to correct overpayments so that taxpayers won’t need to file an amended return. They are working every day on this problem.
The IRS is reviewing people’s returns, and they are starting with the simplest ones. But now they are doing more complicated ones.
The government is going to send out some more money before the end of the year. They did not tell us when, but they will send you a letter soon. They will say how much and when you get it.
For most people, you don’t need to take any more steps.
For more Latest Updates, go to the IRS’s “2020 Unemployment Compensation Exclusion FAQs” page.
Also, Read Child Tax Credit Update: Families Will Get Paid $7,200 Per Child in 2022 by IRS