$10,200 unemployment tax break refunds will start in May, IRS says – By Leada Gore (Oregon Live) / May 5 2021
People who filed for unemployment in 2020 may be receiving a refund from the IRS.
In May, the Internal Revenue Service will start refunding money to people who already filed their 2020 tax returns without claiming the new $10,200 tax break on the benefits, the agency announced Wednesday.
The American Rescue Plan, signed on March 11, allows taxpayers who earned less than $150,000 in modified adjusted gross income to exclude unemployment compensation up to $20,400 if married filing jointing and $10,200 for all other eligible taxpayers. The legislation only excludes 2020 unemployment benefits.
Because the bill’s passage occurred after some people filed their taxes, the IRS will be issuing refunds on the difference starting in May and continuing through the summer.
