The IRS is processing unemployment tax refunds. When will you get yours?

The IRS is processing unemployment tax refunds. When will you get yours?

About 13 million Americans who paid tax on their 2020 unemployment compensation could be getting a hefty tax break. The IRS recently started processing refunds to 2.8 million people who filed their tax returns before new rules under the American Rescue Plan had made an amount of that unemployment income tax-free.

Refund quantities will vary depending on a person’s total earnings and how much of that came from jobless benefits. individual taxpayers can expect to be compensated for income tax paid on up to $10,200 (up to $20,400 for married couples filing jointly). The unemployment tax refunds will be sent in batches, with the first round disbursed to single people without dependents. Married couples and taxpayers with children should expect to see their IRS money later in the summer.

We’ll explain all the details we know, including how to check on your refund online. You may be curious which states are opting out of $300 bonus unemployment payments and which states are offering return-to-work bonuses. If you’re a parent waiting for your first payment of the enhanced child tax credit on July 15, calculate how much you could get for your family and how to use the upcoming IRS child tax credit portals. This story was updated recently with new information.

What you should know about the unemployment tax break and coming refunds

The IRS has started sending refunds to taxpayers who received jobless benefits last year and paid taxes on the money. After some initial delays, more single filers began seeing deposits in their checking accounts starting May 28, with 2.8 million refunds going out the first week of June. The IRS said the next set of refunds will go out in mid-June….Read more>>