The IRS said it recently finished correcting tax returns filed for 2020 that included overpayments for unemployment benefits that workers received that year – and that it has issued 12 million tax refunds as a result.
that workers received that year, and that it has issued 12 million tax refunds as a result.
The tax review came about due to the American Rescue Plan Act of 2021, which was signed into law by President Joe Biden in March 2021. The legislation excluded up to $10,200 infrom being counted as taxable income, but some taxpayers had already filed their returns in early 2021 before the law became effective.
"Some taxpayers received refunds, while others had the overpayment applied to taxes due or other debts," the IRS said on Friday."In some cases, the exclusion only resulted in a reduction in their adjusted gross income."About 14 million tax returns were corrected, but the IRS issued refunds for 12 million of those filings, it added. Individuals and married couples whose adjusted gross income was below $150,000 were eligible to have some unemployment aid untaxed.
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