The IRS is still sending out unemployment tax return stimulus checks to citizens who did their tax filings last year, before Biden’s American Rescue Plan being signed off as a law. If you were one of the earlier tax filers in 2020 and had been paid unemployment benefits, then you may still be owed the revised unemployment benefit amount. The revision was made after the stimulus check bill for the coronavirus.
More Unemployment Tax Refund Stimulus Checks On The Way
A lot of taxpaying citizens were concerned that they will not be getting the newer unemployment benefit stimulus checks since they were early filers. But the IRS has stuck to its promise. The tax agency has carried out an automatic adjustment of the incomes of taxpayers from 2020. They have then used it to calculate if they qualify for any additional unemployment stimulus checks as per the revised guidelines after 2020 March.
It started sending out automatic stimulus checks for the tax refund to those who were eligible in May. Millions have already been sent, but the IRS says that the process will continue till summer’s end.
Biden’s American Rescue Plan stated that a maximum of $10,200 (for joint filers, the value is $20,400) received as unemployment benefit in 2020 is going to be exempt from the federal tax for incomes. However, to be eligible, the income or the AGI has to be below $150,000 on the tax return for 2020. Moreover, any cent past $10,200 is going to be taxable, regardless if it is an unemployment benefit.
The IRS also states that no further actions are necessary even if the change affects you since it will amend the tax returns automatically. However, you still may need to amend your tax return manually, if your current recalculated AGI meets the requirements for more unemployment benefits that are not in the original return.