![]() ![]() Will there be a tax break for the unemployed in 2022? Since May of this year, the IRS has sent out 8.7 million unemployment benefit refunds which surpass 10 million dollars and the agency will continue to review these tax breaks. It should be noted, however, that these tax breaks came after millions of Americans had already filed their yearly tax returns.Īs a result, the IRS is now in the process of refunding any excess tax payments that someone may have made. When it comes to married couples who file their tax returns together, the sum of 10,200 is applied to each spouse. Is a new unemployment tax break on its way?Īs it stands the American Rescue Plan Act of 2021, which sets out to provide relief to individuals who received unemployment compensation in 2020, there is an exclusion cap up to 10,200 dollars of their unemployment benefits from their gross income, so long as the modified adjusted gross income (AGI) is less than 150,000. Now, the question on many people's lips is whether there will be further unemployment income tax exclusions coming up in the near future. There's no need to file an amended return unless you need to claim additional credits not included in this tax exclusion waiver.The Internal Revenue Service (IRS) has started issuing tax refunds to those who received unemployment benefits in 2020, with around 1.5 million refunds sent out, adding to almost nine million already distributed since May 2021. The first refunds are expected to begin in May and will continue into the summer. Married filing jointly taxpayers who are eligible for the up to $20,400 exclusion, and others with more complex returns.Taxpayers eligible for the up to $10,200 exclusion who have already filed 2020 taxes claiming their unemployment insurance benefits.Now, the agency's website informs taxpayers to expect refunds on their unemployment taxes beginning this May for anyone who filed before the waiver was established and therefore overpaid on their taxes or received a smaller refund than they were owed. Since the American Rescue Plan was signed by President Biden after many Americans already filed taxes, the Internal Revenue Service released a statement in March asking taxpayers to hold off on amending their returns while they implemented the new program. Investing +More All Investing Best IRA Accounts Best Roth IRA Accounts Best Investing Apps Best Free Stock Trading Platforms Best Robo-Advisors Index Funds Mutual Funds ETFs Bonds Help for Low Credit Scores +More All Help for Low Credit Scores Best Credit Cards for Bad Credit Best Personal Loans for Bad Credit Best Debt Consolidation Loans for Bad Credit Personal Loans if You Don't Have Credit Best Credit Cards for Building Credit Personal Loans for 580 Credit Score Lower Personal Loans for 670 Credit Score or Lower Best Mortgages for Bad Credit Best Hardship Loans How to Boost Your Credit Score Taxes +More All Taxes Best Tax Software Best Tax Software for Small Businesses Tax Refunds ![]() Small Business +More All Small Business Best Small Business Savings Accounts Best Small Business Checking Accounts Best Credit Cards for Small Business Best Small Business Loans Best Tax Software for Small Business Personal Finance +More All Personal Finance Best Budgeting Apps Best Expense Tracker Apps Best Money Transfer Apps Best Resale Apps and Sites Buy Now Pay Later (BNPL) Apps Best Debt Relief Best Mortgages for Average Credit Score.Best Loans to Refinance Credit Card Debt. ![]()
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