Americans who overpaid taxes on unemployment benefits this year will start to receive refunds this week, the IRS announced May 14.
Under the Biden administration’s American Rescue Plan Act, workers who received $10,200 or less in unemployment benefits last year do not have to pay taxes on that money. However, Congress passed the law change in March, after millions of people had already filed their tax returns. As many as 10 million people potentially overpaid their taxes and could be in line for refunds, the IRS said.
The IRS is doing the work in phases, starting with single taxpayers with simple returns. More complex returns, including those filed by married couples filing jointly, will take until the end of the summer to correct. Read more.