Extra tax refund money for some who lost jobs in 2020 isn’t arriving soon enough for some taxpayers.
Many taxpayers who filed early could be owed a few thousand dollars now because the tax rules relating to a portion of 2020 jobless benefits changed dramatically when President Joe Biden signed the American Rescue Plan into law March 11.
It’s quite a lucrative new, limited tax beak designed specifically to help those who lost jobs in the coronavirus-induced recession last year.
The Internal Revenue Service said May 14 that it was beginning to correct those tax returns that involved the new exclusion. The IRS also said then that it would begin issuing some refunds that week to eligible taxpayers.
The IRS has not stated how much refund money has been issued yet.
Who might see an extra check
The group who could be owed more money involves those who filed their 2020 tax returns in February and early March and paid income taxes on all their unemployment benefits received in 2020.
The IRS began accepting 2020 tax returns Feb. 12 — a month before the change — and has estimated that more than 10 million taxpayers in this group filed returns before the law was changed.