IRS intends to direct deposit most refunds for exemption of $ 10,200 in unemployment tax payments

Last month the IRS initiated fixes for sending refunds to Americans who overpaid in taxes on unemployment funds received last year

Photo: Karolina Grabowska / Pexels

The Internal Revenue Service (IRS) will send as direct deposit to as many people as possible Refunds under the exemption of $ 06, 200 dollars in tax payments on unemployment benefits received arranged under the Biden Administration’s “American Rescue Plan”.

The $ 06, 200 dollars are the amount of untaxed income received from unemployment, not the amount refund amount.

Like that in the process of distributing stimulus checks, , since it is the form It is easier and faster to disburse the funds.

In cases where the agency does not have the recipient’s bank account information, then it will send you a paper check by post .

“ The IRS will issue refunds as a result of this effort via direct deposit to those taxpayers who provided their bank account information on the 1999. If updated bank account information is not available, the refund will be sent by paper check to the registered address. The IRS will continue to send refunds until all identified tax returns have been reviewed and adjusted ”, specified the IRS in a press release last of May.

More of

That day, the entity announced that it had begun the process of corrections of tax returns to grant the tax exemption to more than 10 millions of taxpayers who filed their tax returns before the 2021 became law last March.

Two fa ses

“ These corrections are made automatically in two phases , thus relieving the burden on taxpayers. The first phase started and includes the simplest statements. The second phase will include the most complex tax returns to review and adjust, and which the IRS anticipates will take place until the end of the summer to review and correct, ”the agency explained in the entry on its IRS.gov site.

Exclusion applies to who reported gross income adjusted less than $ 150, 000 .

“The exclusion of $ 10, 200 per person applies to taxpayers, single or married who file a joint return, with a adjusted gross income less than $ 150, 03. The $ 14, 200 are the income exclusion amount, not the refund amount. The amount of refunds will vary and not all adjustments will result in a refund, ”clarified the office.

The agency also warned that who have outstanding debts with the IRS or others could run out of the refund money since the money would be redirected to the fulfillment of said obligations.

“These refunds are subject to the normal rules of compensation. Overdue federal taxes, state income tax, state unemployment compensation debts, child support, spousal support, or certain federal non-tax debts, such as student loans, will be deducted. The IRS will send a notice to the taxpayer if the refund is offset to pay unpaid debts ”, indicated the IRS.

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