IRS Provides Over 2.8 Million Refunds To Those Who Paid Unemployment Insurance Taxes – NBC10 Philadelphia

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  • If you received unemployment benefits last year, you may be entitled to a refund from the IRS.
  • According to a law passed in March, the first $ 10,200 of benefit income is exempt from federal income tax.
  • The IRS has started sending money to people in this category, and more refunds are expected this summer.

The federal rebate is given to more than 2.8 million people who paid taxes on unemployment benefits that are no longer applicable due to changes in US bailout law.

The law, which was passed by parliament in March, excludes the first $ 10,200 of unemployment insurance from household income. Less than $ 150,000 With an adjusted total income in 2020.

Some people may have to pay because tax season had already started when the change was made. Others who have tax or other debts can put money into their balance instead.

The exact amount each taxpayer receives may vary.

The IRS currently determines that 13 million people are eligible for adjustment.

To date, tax authorities have reviewed over 3.1 million tax returns, of which over 2.8 million are eligible for a refund.

The next round of refunds will take place in mid-June, but the review process will continue until the summer.

The person whose return has been adjusted will receive a letter from the IRS notifying them of the change and the amount.

The IRS is also considering other tax credit returns to see if they are also affected by the exclusion. This includes earned income tax credits, premium tax credits, and collection refund credits.

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For earned income tax credits, the IRS adjusts returns for single and childless individuals and qualifies for the deduction. It will also adjust your return if you are charged an earned income tax credit and include eligible children.

However, the tax authorities have said that anyone with a child eligible for an income tax deduction after the unemployment income tax deduction must file an amended income tax return to receive the benefits.

IRS Provides Over 2.8 Million Refunds To Those Who Paid Unemployment Insurance Taxes – NBC10 Philadelphia

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