Unemployment tax break refund: Your IRS money could be here tomorrow

Unemployment tax break refund: Your IRS money could be here tomorrow

The IRS is releasing more unemployment tax refunds on Thursday via direct deposit. Paper checks will follow.

If you’ve been waiting to see your unemployment tax refund from the IRS, you may get it Thursday or soon after. The IRS announced it will send another round of refunds to nearly 4 million people who paid taxes on unemployment compensation they received last year. The agency will issue refunds by direct deposit on July 14 and by paper check on July 16.

The refunds are part of the American Rescue Plan which made the first $10,200 of 2020 jobless benefits — or $20,400 for married couples filing jointly — nontaxable income. Roughly 13 million taxpayers could be eligible for the adjustment because they overpaid when they filed their taxes before the bill was passed.

If you see an IRS TREAS 310 code from your bank, it could mean your money is there. If not, we’ll explain below how to access your IRS account for clues about your refund status. For other unemployment news, you can read about states ending the $300 weekly bonus payments. And if you’re a parent expecting your first child tax credit payment on July 15, we can tell you how it could affect your taxes next year. We’ve updated this story with new information.

Main details about IRS tax refunds on unemployment benefits
In late May, the IRS started sending refunds to taxpayers who received jobless benefits in 2020 and paid taxes on that money before the American Rescue Plan went into effect. That law waived taxes on up to $10,200 in unemployment insurance benefits for individuals earning less than $150,000 a year.

The first batch of these supplemental refunds went to those with the least complicated returns (single taxpayers with no dependents), and batches are supposed to continue throughout the summer for more complicated returns. According to an igotmyrefund.com forum and another discussion platform on Twitter, some taxpayers who filed as head of household or as married with dependents started receiving their IRS money in early July. Others seem to be getting updates on their transcript with dates of July 14 or July 26.    ReadMore


Source : cnet