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IRS is sending refunds to millions who have paid unemployment taxes. Do you get the tax benefit?



The IRS will automatically get back thousands of dollars paid for unemployment checks in 2020. Here's What You Need to Know

The IRS is now paying back thousands of dollars to those who have paid taxes on unemployment benefits.

Sarah Tew / CNET

You may get a refund from the IRS if you paid taxes this year on unemployment benefits you received in 2020. The IRS has begun to refund money to as many as 10 million people who filed their tax returns before the $ 10,200 tax break that is included in the US Rescue Plan Act became law. Under the new rules, unemployment benefits are not considered to be income from work during the pandemic, so you cannot be taxed on the money you received in 2020.

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 summer it processes tax returns and 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 $ 300 Bonus Unemployment Benefits, authorizes one third stimulus check (and “plus-up” payments) and increases the child discount to as much as $ 3,600 per child.

Last year, 23 million Americans filed for unemployment, according to the Bureau of Labor Statistics. below Pandemic unemployment assistanceThis 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 your first payment of the child discount and how much you can get 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 adjusted gross income.
  • 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 file an amended tax return to claim the exemption. (Here’s how track your tax filing status and refund online.)
  • 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 IRS Get My Payment tracker, the Where is my refund tool, the modified Return Status tool, or another IRS portal.






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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 stimulus check problems.)

For more details, all about it here child discount up to $ 3,600 per child and who qualifies for the child discount.






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