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Friday, July 1, 2022

Will Unemployment Tax Refunds Be Sent Out This Fall?

During the summer, the IRS had begun adjusting the tax returns for 2020 and issuing unemployment tax refunds of about $1600. The tax authority stated that adjustments will continue until the end of summer. However, the last unemployment tax refunds were sent in July. 1.5Mn taxpayers received them. But it is now Fall, and several million still wonder if there will be any more sent.

The Official Stance On Further Unemployment Tax Refunds

The first jobless benefits worth $10,200 were defined as non-taxable in March in Biden’s American Rescue Plan. Taxpayers who had filed their tax returns earlier than the legislation and had already paid taxes including those benefits were going to get the unemployment tax refunds.

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The unemployment tax refund is only for those filing individually. The exact refund amount will depend on the person’s overall income, jobless benefit income, and tax bracket. But the unemployment tax refund can be seized by the IRS to pay debts that are past due. This includes unpaid child support and state or federal taxes.

The IRS has sent letters to taxpayers who are supposed to get the unemployment tax refund. This is the best way of knowing if you are getting a refund or if it was seized.

With the July payments, the total number of refunds issued by the IRS is over 8.7Mn. The total value is more than $10Bn. The IRS stated that the recalculations were being done in phases. The first ones would have single filers, having no dependents. The 1st batch was sent to the tax filers with the easiest returns. But batches, where the returns are more complicated, are expected to take more time to get processed. However, the IRS has not given any further official dates or statements regarding the schedule.

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