IRS Sent Out 12 Million Refunds Due to Corrections to 2020 Tax Returns
If you filed a tax return in 2020, you may be getting even more money back.
The Internal Revenue Service says it has refunded almost 12 million taxpayers after making corrections to their 2020 tax returns.
According to the IRS, the corrections were necessary due to the American Rescue Plan Act. When President Joe Biden signed that bill into law back in March 2021, it excluded "up to $10,200 in unemployment compensation from taxable income calculations."
The change, however, came after some taxpayers had already filed their tax returns, causing them to overpay on unemployment compensation in 2020.
Who does this affect?
Those impacted by this include single taxpayers and married couples with modified adjusted gross income below $150,000 in 2020.
How much money was returned to the American taxpayers?
The IRS says it fixed about 14 million returns and that resulted in refunds totaling $14.8 billion. The average return was about $1,232.
If you were one of those affected, you should have (or will be getting) a letter about corrections from the IRS. You should keep this letter for tax records.
Those affected taxpayers should have received a refund or had the funds applied to taxes due or other debts.
What if I believe I was one of those affected but didn't get a refund yet?
Eligible taxpayers who didn't get a correction from the IRS might have to file an amended 2020 tax return to claim the refund.
To learn more information regarding these tax corrections, visit this IRS page.
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