The IRS is delivering another batch of federal refunds to Americans who collected unemployment benefits last year and paid taxes on that money
The agency said Wednesday that it’s processing returns for 1.5 million people who paid taxes on unemployment aid before mid-March, when Democrats passed a stimulus bill that included a tax break for jobless Americans.
The law waived taxes on up to $10,200 in 2020 unemployment insurance benefits for individuals who earn less than $150,000 a year. The IRS has estimated that up to 13 million Americans may qualify for the tax break.
Refunds are expected to land in Americans’ bank accounts on Wednesday, while paper checks could arrive as soon as Friday. The average refund is worth about $1,686.
The agency has so far delivered refunds to 8.7 million Americans totaling more than $10 billion, and will continue this summer to review and adjust tax returns.
The IRS previously said it will do the recalculation in two phases, beginning with taxpayers who are eligible for the $10,200 exclusion. It will then proceed to calculate the new refund for married couples who are eligible for the $20,400 exclusion and other more complex returns.
“There is no need for taxpayers to file an amended return unless the calculations make the taxpayer newly eligible for additional federal credits and deductions not already included on the original tax return,” the agency said…Read more>>