Skip to content
IRS Sends 1.5 Million Additional Tax Refunds To People Who Overpaid Unemployment Benefits


The government is issuing another batch of refunds this week to taxpayers who received unemployment assistance last year and overpaid in taxes, the Internal Revenue Service said.

The agency said it will issue 1.5 million tax refunds to Americans this week, with a typical refund of around $ 1,600. The IRS said direct deposit payments were made from July 28 and paper checks started arriving in mailboxes on July 30.

This is the fourth round of unemployment assistance refunds the IRS has issued since Congress amended the tax law this spring to allow former unemployed people to keep more of their benefits. The IRS sent three previous rounds of payments in may, June and earlier this month.

Normally, unemployment benefits are subject to federal income tax. However, the US bailout, adopted in March, decreed that up to $ 10,200 in unemployment benefits would not be taxable. The change, adopted after millions of unemployment assistance recipients had already filed tax returns, meant many had to be paid back.

Theirs said previously up to 13 million people could be eligible for reimbursements. Since May, the agency has returned $ 10 billion to 8.7 million taxpayers, he said. The IRS plans to continue reviewing and adjusting tax returns over the summer.

How to get reimbursed?

Most taxpayers who overpay their taxes don’t have to do anything to collect a refund, according to the IRS. The agency said it proactively adjusts taxpayer refunds and returns money.

However, a group of people may need to file an amended tax return to get all the money they are owed. If a taxpayer has a dependent and the exclusion of unemployment benefits from last year’s total income places the income below the earned income tax credit thresholds, then they will need to file an amended return for claim this tax credit, the IRS said.

This does not apply to single taxpayers who become eligible for the EITC – the IRS will automatically adjust their returns, the agency said.

The maximum income to apply for the EITC is approximately $ 41,000 for a single parent of a child and $ 47,000 for a married couple. The limits increase with more children.

.



Source link