The IRS may need to send you a refund if you paid taxes on the unemployment benefits your received in 2020. Included in theis a on unemployment benefits you received. If, however, you paid taxes on the money before the unemployment tax break went into effect, the IRS said it will automatically refund that money to eligible people. The IRS said the first refunds will go out this month.
The new stimulus bill also gives you more weeks of the weekly bonus, a for and for up to .
23 million Americans filed for unemployment last year due to the, according to the Bureau of Labor Statistics. Under the created by the CARES Act in March 2020, this included people who were laid off as well as gig workers, contractors and self-employed people who don't normally qualify for unemployment insurance. Here's what we know about the unemployment tax refund right now, and the details we're still waiting to learn. While you're here, here's .
3 important details to know about the unemployment tax refund
- If the IRS determines the taxpayer is owed a refund, it will send a check automatically.
- The refunds are supposed to get sent out starting in May and extend into the summer. We've asked the IRS for a specific date for when the first payments will go out.
- You do not need to (here's how to ).
Details we still don't have about the unemployment tax refund
- In what form the unemployment refund will arrive
- If you'll be able to track it with the or some other portal
- If you'll receive a , that you have been refunded tax money
- How to contact the IRS if there's a problem (here's what we know about contacting the IRS about )
"This new clarification from the IRS is good news for the millions of taxpayers impacted, but may still be confusing," said Mark Steber, chief tax officer for Jackson Hewitt. "Some taxpayers may have questions as to the timing of any payment and whether it will come in a check or other form. The IRS is still providing clarification on these and other questions related to the just-announced program. Once taxpayers receive their automatic payments in the coming weeks and months it may be a good idea to check in with a trusted tax pro to make sure the IRS computed their amount correctly."
For more details, here are, everything about the and what to know about the .