Thursday May 19, 2022
Taxpayers Receive Unemployment Compensation Refunds
On July 28, 2021, the Internal Revenue Service announced it is continuing to distribute refunds for previously taxed unemployment compensation. The American Rescue Plan Act of 2021 excluded up to $10,200 of 2020 unemployment compensation payments from taxable income. The exclusion applies for individuals and married couples with modified adjusted gross incomes under $150,000.
The latest round of payments will bring the total distributions to 8.7 million refunds with total value over $10 billion.
The IRS has been reprogramming its software to provide the refunds with no action required by taxpayers. As the process continues, the IRS steadily recalculates more complex tax returns. The payments for the latest 1.5 million taxpayers were an average of $1,686 each.
The IRS published an explanation of the individuals who need to file an amended return and those who do not.
Published July 30, 2021