430,000 Americans receive unexpected payments
430,000 Americans receive unexpected payments

430,000 Americans receive unexpected payments

The IRS has just issued just under half a million payments in connection with stimulus bill that Congress passed earlier this year. The payments are tax refunds from the IRS, and they originate from the so-called American rescue plan, which President Biden signed into law in March.

Among other important provisions in the bill, it excluded the first $ 10,200 in unemployment benefits that people received last year from being taxed. Usually, unemployment income is taxed, the same as any income. But last year was no normal period. Millions of people lost their jobs in the wake of the economically devastating coronavirus pandemic. And this was perceived as a way of not adding spot to harm and letting people keep more of the unemployed income that has helped them cope.

The IRS issues several unemployment tax refunds

A stimulus check, pen and IRS form sit on a computer keyboard. Image source: Rick / Adobe

So why should the IRS send out waves of unemployment reimbursement checks as a result of the provision of the law? This latest wave was actually the latest. And it sent about 430,000 repayments totaling more than $ 510 million to taxpayers.

That’s because many Americans went ahead and filed their taxes this year Before the stimulus law was passed in March. So when that happened, the IRS started looking back through already-filled tax returns, looking for people who were essentially paying too much.

“Earlier this year, the IRS began its review of tax returns filed prior to the adoption of the ARPA to identify the exclusive unemployment benefit,” the tax office said in a news release. “To date, the IRS has issued over 11.7 million reimbursements totaling $ 14.4 billion.”

“Almost done”

So far, the IRS has identified over 16 million taxpayers who may be eligible for an unemployment adjustment. However, not everyone receives a refund of unemployment tax. Some will, but others will have the overpayment applied to taxes due or other debt.

Some additional key facts:

  • The latest wave of refunds affected more than 519,000 returns. And about 430,000 taxpayers received refunds averaging about $ 1,189.
  • The IRS plans to issue another batch of corrections by the end of this year.
  • The IRS also says that its review of returns and processing corrections is almost complete.
  • The $ 10,200 exclusion applied to individuals and married couples whose adjusted adjusted gross income was less than $ 150,000.
  • The IRS has already reviewed the simplest tax returns and is now concentrating on more complex tax returns.

“Affected taxpayers will generally receive letters from the IRS within 30 days of the adjustment informing them of the type of adjustment made,” the IRS news release continues. The letter will contain the amount, as well as whether there will be a refund.

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