ALMOST 3 million tax refunds of up to $20,400 are being sent out to eligible Americans now, for those owed an adjustment on taxes paid.
The IRS is this week sending out the 28 million refunds, to those who received unemployment benefit money in 2020 and then paid taxes on the money this year.
Approximately 10million taxpayers are waiting for a $10,200 payout from the IRSCredit: Getty
The IRS is this week sending out the 28 million refundsCredit: Getty
The $10,200 unemployment tax break is part of the American Rescue Plan passed in March.
The plan also authorised the third stimulus checks, as well as more money for the child tax credit.
According to CNET reports, the IRS said it has identified 13 million taxpayers so far, who paid taxes and may be eligible for an adjustment.
The unemployment tax refunds would reportedly be sent in waves, with those first to receive them being Americans who are single filers.
Joint filers and those whose tax returns were a little more complicated would get them in coming weeks and months.
The IRS was reportedly calculating the refunds and was handling the simpler returns first.
This latest refund announcement followed Thursday news that first-time unemployment claims dropped for the week ending May 29 – to 385,000, from 406,000 for the week before.
The news comes as Americans are waiting for thousands of dollars in tax refunds from the IRS, and some are saying the relief couldn’t come soon enough.
Approximately 10million taxpayers may get a $10,200 payout if they filed their tax returns before the tax break in the American Rescue Plan became law.
The American Rescue Plan Act signed on March 11 included a $10,200 tax exemption for 2020 unemployment benefits.
The exemption meant that checks sent during the pandemic weren’t counted as earned income.
In other words, you won’t get taxed on the COVID-19 relief you received in 2020.
The IRS started rolling out the first refunds last week and will continue to do so through the summer, but some people are running out of patience
The IRS started rolling out the first refunds last week and will continue to do so through the summer, but some people are running out of patienceCredit: Getty