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The Internal Revenue Service (IRS) will send out another round of refunds under the $ 10,200 exemption in unemployment taxes before the end of this year.
On November 1, the agency reported the issuance of 430,000 redemptions equivalent to $ 510 million to taxpayers who overpaid for benefits received in 2020.
Some people who paid unemployment taxes may not receive a refund if they owe money to the IRS or other private institutions, the agency said.
“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 more than 16 million taxpayers who may be eligible for the adjustment. Some will receive refunds, while others will be overpaid for taxes owed or other debts, “the entity explained in a statement.
In April, the office began evaluating and correcting the tax returns of taxpayers eligible to receive the refund under the US Bailout Act passed in the US Congress in mid-March.
“The $ 10,200 is the amount excluded when figuring your adjusted gross income (AGI); it is not the amount of the refund, ”explained the IRS.
The exclusion applies to individuals and married couples whose modified adjusted gross income was $ 150,000 or less.
Under the new law, taxpayers who earned less than $ 150,000 in adjusted gross income Modified may exclude part of unemployment compensation from their income or up to $ 10,200 per person. This means that they do not have to pay taxes on that part.
In the cases of marriages filing jointly, they can exclude up to $ 20,400.
The IRS was supposed to complete the review and disbursement process by the end of the summer. In the most recent press entry, the office does not specify why the process was delayed and they are still distributing payments at this time.
“The return review and correction processing is almost complete, as the IRS has already reviewed the simpler returns and is now concentrating on more complex returns. The IRS plans to issue another batch of corrections before the end of the year, ”the IRS added on its website.
“Affected taxpayers will generally receive letters from the IRS within 30 days after the adjustment, informing them what type of adjustment was made (refund, IRS debt paid, or other authorized debts paid) and the amount of the adjustment,” he warned.
The delivery of monthly checks under Biden’s “Child Tax Credit” has put an additional burden on the IRS.
The third stimulus law approved in Congress provides for the advance monthly delivery of payments between July and December to eligible families. The next shipment under the Biden Administration’s expanded program is scheduled for December 15.
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IRS owes exemption refunds of $ 10,200 in unemployment tax payments and does not give reasons
Eddie is an Australian news reporter with over 9 years in the industry and has published on Forbes and tech crunch.