Eligible for a refund of $10,200
Unemployment tax payments In this article you will find things to consider to find out if you are eligible for a refund of $10,200 in unemployment tax payments, if this topic is of importance to you, continue reading.
The most important thing in order to receive a refund from the Internal Revenue Service (IRS) under the tax exemption is that you have reported unemployment funds to the agency.
Many people wonder if they may be eligible to receive tax refunds for unemployment funds. In previous years more than 40 million citizens qualified for these benefits. But, not all of them received a refund.
YOU SHOULD HAVE REPORTED YOUR UNEMPLOYMENT INCOME TO THE IRS.
The most important and first thing to keep in mind is that in order to receive a payment from the Internal Revenue Service (IRS) under the tax exemption, you must have reported that income to them.
YOU MUST HAVE EARNED AT LEAST $150,000 OR LESS.
Just as important, the exclusion applies to people who earned less than $150,000 in adjusted gross income.
You are only eligible to exclude unemployment compensation if you received it in 2020 and if your modified adjusted gross income (AGI) is less than $150,000. The modified AGI to qualify for the exclusion is your 2020 adjusted gross income minus the total unemployment compensation you received. This limit is the same for all tax states, regardless of whether you are married and filing a joint tax return.
This means that married couples can exclude up to $20,400 or $10,200 per spouse.
If your income exceeded the above amount, you will have to pay the full amount of taxes due.
It should be noted that the $10,200 is the maximum amount that can be excluded when calculating taxable income; it is not the amount you will receive.
THIS PAYMENT COULD BE GARNISHED IF YOU HAVE OUTSTANDING DEBTS TO PAY
The IRS has estimated that about 13 million people may be eligible for such an adjustment. But not all of them do, because if they have outstanding debts owed to the IRS or other entities, the payment is garnished.
IRS offices will send letters to taxpayers within 30 days of the review to inform them whether or not the refund was issued.
REFUNDS WILL BE EXTENDED UNTIL THE END OF THE SUMMER.
For the time being, the IRS will process a new batch of refunds. Therefore, it stated in a June 4 press release that it will send out new payments in the middle of this month.
To date, the IRS has reviewed more than 3.1 million returns and has sent out approximately 2.8 million refunds.
The agency conducts the review and mailing of returns in two phases, first with the simplest tax returns, which will run through the end of the summer.