Last week, the IRS began sending its first round of tax breaks to eligible people. The agency said it will continue to repay the money throughout the summerand reviews taxes paid on unemployment benefits. The IRS said refund amounts will vary and not every adjustment will result in a refund. 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 is also what we know . This story was recently updated with new information.
IRS Unemployment Tax Refund: 9 Important Things to Know
The IRS is now sending unemployment refunds to taxpayers who paid taxes on unemployment benefits when they filed their returns earlier this year. This is what to expect.
- The tax break is for those who have made less than $ 150,000 .
- Refunds began the week of May 10 and will continue through the summer as the IRS reviews tax returns.
- If the IRS determines that you owe a refund of the unemployment tax break, it automatically sends a check.
- You do not have to . (Here’s how .)
- Refunds are made as a direct deposit if you have provided bank account information on your 2020 tax return. Otherwise, the refund will be sent as a paper check to the address that the IRS has available.
- The IRS runs the recalculations in two stages, starting with those who qualify for the tax break of up to $ 10,200. It will then adjust the returns for those married-filing-joint taxpayers who qualify for the tax break of up to $ 20,400.
- The IRS will send you a message explaining the corrections within 30 days of a correction being made.
- You cannot track the progress of your refund through the , the , the modified Return Status tool, or another IRS portal.
- The IRS may impose repayment to cover any overdue debt, such as for federal or state taxes and child support.
We do not yet know information about unemployment tax refunds
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 .)
For more details, all about it hereand .