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A few days ago the Internal Revenue Service released a large number of refund payments to taxpayers for unemployment checks, since they paid other taxes.
This is possible, since unemployment checks are taxed like any other income, but the laws that were introduced in the pandemic allowed to exclude taxes from this concept.
Therefore, the law excludes taxes up to $ 10,200 Dollars for individuals and $ 20, 400 dollars for couples filing jointly and receiving unemployment benefits.
The problem for the IRS was that by the time Biden’s bill passed, mid-March, many people had already filed their taxes for 2020 and paid the corresponding taxes under the previous law, so they are automatically eligible.
This section is key to know If the taxpayer is part of the group of people who are receiving, or are about to receive the refund, since if taxes were paid and declared after the enactment, it is most likely that they will not receive a refund.
If the taxpayer’s income was less than $ 150, 000 dollars last year , collected unemployment benefits and filed your return before the law was enacted, you may have overpaid your taxes and, then, you have automatically qualified to receive a refund, which is called a surprise.
The IRS says it has identified more than 16 millions of taxpayers who may be eligible for refunds , but payments have not been distributed due to the huge workload of the tax agency. Since May, it has been using bank and address information from tax returns to distribute refunds.
The federal tax agency in a statement press announced that some 430 have been paid. 000 refunds totaling more than 510 million dollars in the last batch.
The amount per taxpayer this time has averaged $ 1, 189 dollars. According to the Century Foundation approximately .
So far, the IRS has issued more than 11. 7 million tax refunds on unemployment benefits of 2020, for a total of more than $ 14, 400 billion dollars.
It is recommended that if there are doubts in this regard, first the taxpayer review in detail how his tax return was 2020, the fundamental thing is to see what date the presentation was made, as that will be final to know if you may be eligible for the refund.
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