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The first taxpayers eligible to receive refunds from the Internal Revenue Service (IRS) corresponding to the exemption of $ 10,200 in the payment of unemployment taxes They have already started receiving the money.
A CNET report on Wednesday indicates that some Americans eligible for payments they began to see the deposits in their bank accounts from Friday, May 28, and others received the checks in the first week of June.
These payments came mainly to taxpayers who filed individual returns.
The IRS has not specified how long the process will take between the agency schedules the refund and the person can use the money that was deposited or reaches the mailbox.
In the case of the third stimulus check and direct deposits, the IRS schedules the money every Friday, but the person cannot freely use the funds until Wednesday of the following week.
Two-Stage IRS Submission Process
What the IRS did specify in a statement on May 14 is that the procedure for correcting and sending reimbursements to this population will be carried out in two phases. The first, which has already taken off, will focus on the simplest or individual statements. While in the second, which will begin later in the summer, the marriage returns that declare jointly and claim dependents and tax credits will be examined.
The office has set out to send as direct deposit to as many people as possible refunds under the $ 10,200 exemption in unemployment tax payments arranged under the Biden Administration’s “American Bailout Plan.”
Most refunds will be sent by direct deposit
“The IRS will issue refunds as a result of this effort through direct deposit to those taxpayers who provided their bank account information on the 2020 tax return. If updated bank account information is not available, the refund will be sent by check. paper to the registered address. The IRS will continue to send refunds until all identified tax returns have been reviewed and adjusted, ”the IRS specified in a press release on May 14.
Under the provision in the Biden Administration’s “American Bailout Plan,” 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 case of jointly filing marriages, each would be eligible for the exclusion, which could exempt up to $ 20,400 from tax as a result of the new provision.
“If you and your spouse file a joint return and your Joint Modified AGI is less than $ 150,000, you must exclude up to $ 10,200 from your unemployment compensation and up to $ 10,200 from your spouse’s unemployment compensation ”, requires an entry on the IRS website.
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Eddie is an Australian news reporter with over 9 years in the industry and has published on Forbes and tech crunch.