Did you pay tax on the unemployment benefit that you received last year when you filed your tax return for 2020? If so, you can get a refund. The IRS is now working to send money to nearly 10 million people who have applied for thewas included under the . This is because the unemployment checks during the pandemic are not considered an income, so no tax can be imposed on the money you received in 2020.
Last week, the IRS began sending tax breaks to eligible people. It said it will continue to pay back the money throughout the summerand reviews taxes paid on unemployment benefits. The March incentive law also extends the weekly , authorizes one (and ) and to as much as .
Last year, 23 million Americans filed for unemployment, according to the Bureau of Labor Statistics. belowThis included layoffs, handy workers, contractors and the self-employed who normally do not qualify for unemployment insurance. We will explain the unemployment tax refund and the details we are still waiting to learn. This is when you can expect to receive and when payments begin in July. This story was recently updated with new information.
IRS Tax Refund for Unemployment: 6 Important Things to Know Now
With unemployment refunds going up to $ 10,200 to taxpayers who paid taxes when they filed, here’s what to expect.
Information about unemployment tax refunds that we are still waiting for
There is one more thing we don’t know about refunds. We contacted the IRS for clarification:
- How to contact the IRS if there is an issue with your tax break refund. (Here’s what we know about contacting the IRS .)
“This new clarification from the IRS is good news for the millions of taxpayers affected, but it can still be confusing,” said Mark Steber, Jackson Hewitt’s chief tax officer. Steber suggested contacting a tax expert after receiving your automatic refund to make sure the IRS sent the correct amount.
For more information, here are seven ways, all about the and what you need to know about the .