TAX REFUNDS ABOUT TO HAPPEN TO MILLIONS
July 20, 2021 - Douglas Myser
Tax refunds about to happen to millions. As part of the Tax Code changes that the Biden Administration passed, millions of Americans will be getting an extra boost in income, in the form of tax refunds above and beyond the normal amount that they would receive. Unexpected direct deposits and paper checks are going out to people whose tax bills were reduced after they'd already paid them, under a provision in President Joe Biden's massive pandemic rescue bill from march. A windfall from the IRS might be just the cash infusion you need to help you deal with expenses or pay down debt. Some may even be able to pay for Tax Resolution Services. Normally, unemployment checks are taxed the same as any other income. but Biden's pandemic relief package allowed those who claimed jobless benefits in 2020 to exclude big chunks of the money from taxes up to $10,200 for individuals, and $20,400 for couples who file jointly. Tax refunds about to happen to millions.
By the time the President signed the bill in mid-march, many people had already filed and paid their taxes. If your income was below $150,000 last year and you collected unemployment, you may have overpaid what you thought you owed in taxes---and find a surprise refund in your bank account or mailbox. Americans who paid too much tax on their unemployment will start getting money back via direct deposit the IRS said. Whenever the tax agency doesn't have a recipient's banking information, it issues a paper check---and those are scheduled to begin going out soon. Some 40 million Americans received unemployment payments in 2020, according to the Century Foundation. The average individual beneficiary go $14,000--and $10,200 of that is now tax-free,leaving only $3,800 that's taxable. Some 4 million refunds are being paid out in the round, in amounts averaging $1,265 says the IRS. Some people will get more, some less. A similar batch in early June provided 2.8 million refunds to people who overpaid taxes on 2020 unemployment benefits. Whether that will be the end of it, who knows.