Fast Facts for July 13, 2021
Finally! I got an update from the IRS about your unemployment tax refunds. Millions of you are going to be getting your money back tomorrow.
There’s a lot of information in this video – so watch till the end.
The IRS says it’s ready to issue another round of refunds to more than 4 million of you who overpaid taxes on your 2020 unemployment benefits.
Direct deposit refunds will go out July 14th and paper check refunds will be going out on July 16. If you do not get your unemployment tax refund in this round – the IRS says don’t worry – they will be continuing to issue refunds to those who are owed throughout the summer.
The *average* unemployment tax refund – according to the IRS is – $1265. For those of you who overpaid – the IRS will either issue you a refund or your refund will be applied to other outstanding taxes or federal or state debts owed.
So – who is included in this round?
It’s unclear. The IRS said in the past they were issuing these refunds first to those who had the simplest returns – like single filers — and would work their way up to those with more complicated returns, like those who file married or have dependents. But no specifics were given for this round.
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.
If you fall into this category – generally do nothing. The IRS is automatically recalculating your return to get your unemployment tax refund. But there are some situations where you may need to file an amended tax return to qualify for additional tax credits but you can read about those on irs.gov.
Once you receive your unemployment tax refund – within 30 day’s you’ll receive a letter from the IRS explaining your refund or any offsets that were made. The IRS already sent out rounds of unemployment tax refunds in May and June.
