IRS to automatically refund taxes on reported unemployment benefits starting May
WASHINGTON (KOLD News 13) - Today, the Internal Revenue Service announced that individuals who filed their taxes and reported unemployment compensation before the announcement of the American Rescue Plan, will begin receiving an extra refund starting May.
The legislation (American Rescue Plan) allows single taxpayers making less than $150,000 annualy to exclude unemployment compensation up to $10,200. Couples who filed jointly will receive a tax deduction of $24,000 for received unemployment benefits.
The first automatic refunds are expected to go out in May, and will continue throughout the summer.
For those who filed before March 11, the IRS will manage recalculations in two phases. It will start with taxpayers who filed as ‘single’, followed by married couples who filed jointly.
The IRS says there is NO NEED for taxpayers to file an amended return, unless the calculations make the taxpayer newly eligible for additional federal credits and deductions not already included on the original tax return.
According to the Bureau of Labor Statistics, over 23 million U.S. workers nationwide filed for unemployment last year.
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