If you received unemployment benefits in 2020 and paid tax on the money this year when you filed your income tax return, the IRS can automatically refund all or part of what you paid. Thepassed in March including one so that unemployment checks you received during the do not count as earned income for the year. You also cannot be taxed on the money. If you already paid taxes on the unemployment money, the IRS said it will automatically refund the amount for qualified people.
According to a report from the Treasury Department, the first repayments are expected this month for about 7.3 million people. Refunds will be forwarded during the summer as the. In addition to this unemployment tax benefit, the March incentive law also extends the weekly bonus , authorizes one (what you need to know about ) 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 are not normally eligible for unemployment insurance. We will explain the unemployment tax refund and the details we are still waiting to learn. Here’s how to tell if the IRS owes you anything and how to get a . This story has been updated with new information.
IRS Tax Refund for Unemployment: 3 Important Things to Know
Information about unemployment tax refund we are waiting for
“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. “Some taxpayers may have questions about the timing of a payment and whether it will come in a check or some other form.”
Steber also suggested checking in with a tax professional once you receive your automatic refund to make sure the IRS has sent the correct amount.
For more information, here are seven ways, all about the and what you need to know about the .