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The IRS will begin sending refunds to those who exceed the tax on unemployment benefits

Americans who overpaid taxes on unemployment benefits this year will begin receiving refunds this week, the Internal Revenue Service announced Friday.

Under the American Rescue Plan, workers who received less than $ 10,200 in unemployment benefits last year do not have to pay taxes on that money as usual.But Congress passed March law amendmentAfter having millions of people I have already filed a tax return.. The IRS said Friday that as many as 10 million people could overpay taxes and line up for refunds.

The agency has begun amending these tax returns and issuing refunds. It’s a step-by-step process, starting with a single taxpayer who makes a simple filing, such as a child or someone who didn’t claim a refundable tax credit.

More complex tax returns, including those submitted jointly by the couple, will need to be amended until the end of summer, according to the Internal Revenue Service.

Overpaid taxpayers do not have to do anything. The IRS said it is considering and amending returns “to determine the correct amount of unemployment compensation and taxes.” Not all people in the bucket will receive more money, officials said, saying the review “may lead to no refunds, reductions, or tax changes.”

Taxpayers who provide bank information at the time of filing can receive repayments by direct deposit. According to the IRS, those who do not receive the check will be mailed to their address.

However, the IRS says that those who are in debt may not see additional refunds. What is called a “financial offset program” allows the government to seize tax refunds to pay child support and old debt such as child support. Student loan..

The IRS states that additional refunds are “subject to normal set-off rules” and are “delinquent federal taxes, state income taxes, state unemployment compensation obligations, child support, spouse support, or certain federal non-taxable obligations (ie, student loans). ). “

According to the IRS, affected people will receive an email notification that their returns have been adjusted.

The IRS will begin sending refunds to those who exceed the tax on unemployment benefits

Source link The IRS will begin sending refunds to those who exceed the tax on unemployment benefits

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