The tax break on unemployment benefits was part of the $ 1.9 billion stimulus package approved in early May.
Photo: ASHRAF SHAZLY / AFP / Getty Images
If you collected unemployment benefits last year, you could receive a larger tax refund this year.
And it is that, as of May, the IRS will send refunds to taxpayers who filed their 2020 tax returns without claiming a new tax exemption about unemployment benefits.
The tax break was part of the $ 1.9 billion stimulus package approved early last month.
The exemption says that those who receive unemployment benefits do not need to pay federal taxes on the first $ 10,200 they were given, as long as your 2020 adjusted gross income is less than $ 150,000, as reported by the IRS.
For married couples in which both spouses collected unemployment benefits and their combined income was less than $ 150,000, up to $ 20,400 of unemployment benefits can be tax exempt.
Because this exemption was approved after some people filed their taxes, the IRS will take steps in the spring and summer to make the appropriate change to the returns, which may result in a refund for them.
The first refunds are expected to take place in May and continue through the summer.
For those taxpayers who have already filed and calculated their taxes based on the total amount of unemployment compensation, the IRS will determine the correct taxable amount of unemployment compensation and taxes.
That is anyone who has paid more taxes (for not taking into account the exemption), the money will be refunded or your payment will be applied to other taxes owed to the IRS.
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