Due to the pandemic, a portion of unemployment benefits in 2020 were made to be untaxed.
Normally, unemployment is taxable income. So if you paid taxes on them, you may be due some money.
Do I get a refund for taxes on my unemployment benefits?
When people get refunds at the end of tax season, it’s for whatever they’ve overpaid on.
The decision to make $10,200 dollars in unemployment benefits tax-free came in 2020 for those earning less than $150,000 per year.
People the filed their taxes before the law went into effect started getting checks mailed out in May.
Over 9 million people had received $10 billion in refunds by July, and the IRS will be sending them through 2021.
Where is my refund?
The IRS is incredibly behind this year, and to give refunds for taxes on unemployment, they’ve adjusted a lot of returns.
More extensive returns are likely taking a bit longer.
How a person selected to get their payment has an impact on wait time also, with checks taking longer than direct deposits to go out.
How much money is being refunded for the unemployment tax refund?
The average amount going out to people is $1,600, but different things factor into the total amount.
If someone misses the tax deadline, they may end up own for penalties and fees.
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