The IRS began sending the first of the tax breaks refund to those who qualify last week. 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 would not normally 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: 8 Important Things to Know Now
Now that unemployment benefits are paid out to taxpayers who paid taxes when they filed, here’s what to expect.
- If the IRS determines that you owe a refund of the tax break, a check is automatically sent.
- The tax break is for those who have made less than $ 150,000 .
- Refunds began the week of May 10 and will continue into the summer as the IRS has reviewed the tax returns.
- 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.
- You do not have to . (Here’s how .)
- Refunds are issued 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 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.
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 .)
For more details, all about it hereand .