Millions of Americans received unemployment funds in 2020.
Photo: OLIVIER DOULIERY / . / .
In the coming days, the Internal Revenue Service (IRS) is expected to send a second batch of refunds to taxpayers under the $ 10,200 exemption to those who paid unemployment taxes to the agency.
However, people who received payments as part of the first batch that the IRS processed last month they must be receiving a letter in the mail in which you specify the correction made to your tax return and the specific amount of the refund.
As reported by the office on its website, within 30 days of receiving the refund, the IRS will send the taxpayer a notice explaining the adjustments that resulted in the application of the exemption. Taxpayers should keep this notice for their records. Taxpayers who receive refunds should review their return after receiving their notice from the IRS, ”the agency said.
On May 14, the IRS announced sending the first refunds under the tax exemption in the “Economic Rescue Plan” of the Biden Administration.
The $ 10,200 is the maximum amount that can be excluded
The third stimulus bill allows taxpayers to exclude up to $ 10,200 in unemployment compensation paid in 2020. “The $ 10,200 is the maximum amount that can be excluded when calculating taxable income; it is not the reimbursement amount ”, clarified the entity.
The $ 10,200 Waiver in 2020 Unemployment Compensation applies to those who earned less than $ 150,000 in adjusted gross income.
“You are eligible to exclude unemployment compensation if you received it in 2020 and your modified adjusted gross income (AGI) is less than $ 150,000. The AGI modified for the purpose of qualifying for this exclusion is your 2020 adjusted gross income minus the total unemployment compensation you received. This limit remains the same for all tax states, regardless of whether you are married and filing a joint tax return (it does not double to $ 300,000), ”explained the IRS.
IRS has sent more than 2.8 million refunds under a $ 10,200 unemployment tax exemption
So far, the IRS has sent more than 2.8 million refunds of more than 3.1 million returns evaluated by the agency.
The entity also announced that in the middle of this month it will process a new batch of refunds.
“The IRS’s efforts to correct overpayments of unemployment compensation will help most affected taxpayers avoid filing an amended tax return. So far, the IRS has identified 13 million taxpayers who may be eligible for the adjustment. Some will receive refunds, which will be issued periodically, and some will have the overpayment applied to taxes owed or other debts. For some, there will be no change, ”explained the IRS.
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