Fast Facts for July 30, 2021
1.5 million of you could be seeing –on average—a $1600 payment coming your way from the federal government.
What? What’s happening what’s this all about.
The IRS announced that it issued another round of unemployment tax refunds this week to more than a million Americans who overpaid taxes on their unemployment benefit. According to the IRS – the average refund was $1686.
They payments went out by direct deposit on July 28 and the paper checks went out today. How long will it take to get a paper check? Depends on how fast USPS can deliver it to you.
The IRS is in the process of recalculating already filed 2020 tax returns to determine who is eligible for one of these refunds. They’ve been recalculating in batches. This was the fourth round of payments that have gone out. The IRS says they’ve already recalculated the simplest returns – now they’re focusing on the more complicated ones.
If you weren’t in this batch – don’t worry the IRS is going to continue to recalculate returns and refund taxpayers who are owed throughout the summer.
But keep in mind – even if you’re owed a refund, if you have an outstanding state or federal tax bill or other types of debt, this refund can be garnished.
To figure out if you qualify for one of these unemployment tax refunds remember — this is for those who have three things. One — were on unemployment in the year 2020. Two – paid taxes on that unemployment income. And three — had a modified adjusted gross income of less than $150,000. If those things apply to you, then the first $10,200 of your unemployment benefit is tax free. If you paid your full taxes on that amount – you’ll be getting that tax payment back.
And because of this recalculation of income – you may now also qualify for other tax breaks and benefits and you may have to file an amended tax return. You can go to irs.gov for more on that.
