Did you lose your job during the pandemic? If yes, the IRS may owe you money, so keep an eye on your bank account.
The IRS is working to send refunds to those that paid taxes on unemployment.
They have issued over 430,000 additional unemployment tax refunds for people that paid taxes on $10,200 worth of unemployment before the American Rescue Plan was passed.
Under the American Rescue Plan, the first $10,200 that someone received in unemployment was untaxed for individuals or families that earned under $150,000.
The goal is to correct the errors by way of refund so people do not need to file an amended return in 2022.
“The review of returns and processing corrections is nearly complete as the IRS already reviewed the simplest returns and is now concentrating on more complex returns,” the IRS released in a statement. “The IRS plans to issue another batch of corrections before the end of the year.”
The people getting refunds now are those that filed their taxes before the rule change. This only applies to 2020, not 2021.
Refunds total over $510 million dollars, averaging around $1,189 per refund.
16 million taxpayers have been identified by the IRS that may qualify for the refunds. Some people are getting checks and others will have the money go toward taxes they owe.
Anyone eligible can expect a letter within 30 days of the IRS making an adjustment and how much they should be receiving.
The IRS will also send refunds for those that did not claim the earned income tax credit or additional child tax credits.
You must respond to the notice the IRS sends.
Related: Are you still waiting for the $10,200 unemployment tax refund? Here’s how to check the status
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