IRS Will Soon Send Refunds To Millions Of Americans Who Paid Taxes On Their Unemployment Benefits
The IRS says that starting next month, it will automatically send refunds to people who paid thousands of dollars of tax on unemployment income — money that they no longer owe. Many people sought unemployment benefits for the first time in 2020 and didn’t realize their benefits were taxable. Others knew unemployment compensation would be taxed but, feeling the financial strain of paying for rent or buying food for their families, opted not to have the funds taken out. But all that changed under the American Rescue Plan, signed into law on March 11. Congress removed the federal taxability of unemployment benefits up to $10,200 for individuals and $20,400 for married couples filing jointly. To get the tax break, your modified adjusted gross income has to be less than $150,000. Read more at The Washington Post.
