IRS issued refunds
REFUNDS ARE ON TRACK
According to a report published on November 1, 2021 on the IRS official websiteThe IRS recently sent 430,000 refunds, totaling about $ 510 million. Refunds are sent to taxpayers who have paid taxes on unemployment benefits from the year 2020.
The IRS has identified more than 16 million taxpayers who may be eligible for their tax adjustment. Some of those who are entitled to the refund will get refunds. Some people will see the overpayment applied to taxes owed or other debts they may have.
Taxpayers who are affected by refunds typically receive a letter from the IRS within 30 days of the adjustment, but if it looks like what we’ve seen before in St. Cloud, the letter can arrive AFTER the refund.
WHY IS THIS HAPPENING?
This happens because of the American Rescue Plan Act, which was put in place in March, excluding the first $ 10,200 in unemployment benefits per taxpayer paid in 2020. The $ 10,200 IS NOT the reimbursement amount. This is the amount excluded when calculating adjusted gross income. This applied to individuals and couples with adjusted gross income less than $ 150,000.
Other corrections are also made for the earned income tax credit, premium tax credit and other credits affected by the exclusion. The IRS says you don’t need to contact the IRS. They will be sending out notices this month and in December to people who may qualify.
According to the article, the IRS just finished reviewing the returns and processing all the corrections that needed to be made, the ones that remain among the more complicated returns, but the IRS plans to release another batch of corrections. before the new year begins.