The IRS Has Issued Refunds – Will You Be Getting One?
REFUNDS ARE ON THE WAY
According to a news story released on November 1st, 2021 on the IRS official website, The IRS has recently sent out 430,000 refunds, adding up to approximately $510 million dollars. The refunds are being sent to taxpayers who paid taxes on unemployment compensation from the year 2020.
The IRS identified more than 16 million taxpayers who could be eligible for the adjustment to their taxes. Some of those who qualify for the refund will be getting refunds. There are some people that will have the overpayment applied to taxes due or other debts they may have.
Taxpayers who are impacted by the refunds are generally sent a letter from the IRS within 30 days of the adjustment, but if it's anything like what we've seen before in St. Cloud, the letter may come AFTER the refund.
WHY IS THIS HAPPENING?
This is happening because of The American Rescue Plan Act, which was put in place in March, excluding the first $10,200 in unemployment compensation per taxpayer paid in 2020. The $10,200 IS NOT the amount of the refund. It is the amount excluded when calculating adjusted gross income. This applied to individuals and couples whose adjusted gross income was under $150,000.
Other corrections are also being made for Earned Income Tax Credit, Premium Tax Credit, and other Credits affected by the exclusion. The IRS says there is no need for you to contact the IRS. They will be sending notices out this month and in December to those people who may be eligible.
According to the article, the IRS has just about completed the review of returns and processing of all of the corrections that needed to be made, with those remaining some of the more complicated returns, yet the IRS is planning to issue another batch of corrections before the new year begins.