IRS Sends Another 1.5 Million ‘Surprise’ Tax Refunds This Week – Community News
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IRS Sends Another 1.5 Million ‘Surprise’ Tax Refunds This Week

WASHINGTON (NEXSTAR) — If you received unemployment benefits last year, you may be in for a surprise this week.

The Internal Revenue Service announced Wednesday that an additional 1.5 million taxpayers will receive refunds averaging more than $1,600 as part of unemployment compensation adjustments made to previously filed income tax returns.

Direct deposit refunds started on July 28, and paper check refunds begin on Friday. This is the fourth round of reimbursement related to the unemployment benefit exclusion clause.

Since May, the IRS has refunded more than 8 million unemployment benefits totaling more than $10 billion. Most eligible taxpayers do not need to take any action to receive their refund.

“To ease the burden on taxpayers, the IRS has revised Forms 1040 and 1040SR filed prior to the bill’s enactment to identify the people who must undergo an adjustment,” the IRS said in a statement earlier this month. “For taxpayers who overpaid, the IRS will refund the overpayment, applying it to other outstanding taxes or other federal or state debt.”

Earlier this year, the IRS said “more than 10 million” people had filed their 2020 returns before the signing of the American Rescue Plan Act on March 11, which excludes the first $10,200 in unemployment benefits received in 2020. of taxable income.

“The IRS will send taxpayers a notice explaining the corrections, which they can expect within 30 days of the correction being made,” the press release said. “Taxpayers should keep all messages they receive for their records.”

The IRS noted that any single or married person with adjusted adjusted gross income over $150,000 is not eligible for the tax exemption. The agency also said that “not all adjustments will result in a refund.”

In some cases, taxpayers may need to file an amended return if they now qualify for deductions or credits that were not originally claimed on their returns.

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