At least 7 million people are likely to get unemployment tax refunds – fr

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At least 7 million people are likely to get unemployment tax refunds – fr


Samuel Corum / Bloomberg via Getty Images

At least 7 million people are likely eligible for tax refunds on unemployment benefits received last year, a new report suggests.
The US bailout, which President Joe Biden signed in March, canceled federal taxes on up to $ 10,200 in unemployment benefits, per person, collected in 2020.

Taxpayers are eligible if their modified adjusted gross income was less than $ 150,000. This limit is the same for all taxpayers, regardless of filing status.

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About 7.3 million tax returns processed by the IRS in early March appear to be eligible under these rules, according to a Treasury report released Friday.

According to the analysis, these statements reported $ 87 billion in collective unemployment benefits. They accounted for almost 99% of all declarations processed indicating unemployment benefit.

Unemployment tax refunds

Many of these taxpayers probably owe a refund from the IRS. Their returns were processed before unemployment tax relief became law on March 11, meaning they likely overpaid their federal tax bill.
To date, the IRS has not said how many taxpayers it expects to get a refund. The agency did not respond to a request for comment on the report’s statistics.

The IRS will begin issuing refunds in May and will continue to pay them through the summer. (The agency may also apply the refund to any other tax due.)

The Treasury Watch Report analyzed tax returns processed by the IRS as of March 4. The drop-off season started on February 12 and ends on May 17.

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