On Friday, IRS said that it has finished repaying nearly 12 million taxpayers who overpaid on their 2020 returns after getting unemployment benefits during the COVID-19 pandemic.
Unemployment Benefits During The Pandemic
Approximately 12 million taxpayers have the IRS paying dedicated however, due to the lingering effects of COVID-19, RIS continue to experience delays during ditribution and finally has come to an end. As of December 23, 2022, IRS had 1.91 million unprocessed individual returns received this year. These include late-filed prior year returns and tax return for the tax year 2021. The 1.49 million returns require error correction or other special handling, and 414,000 are paper returns waiting to be reviewed and processed. This work does not typically require the agency to correspond with taxpayers, but it does require special handling by an IRS employee so, in these instances, it is taking the IRS more than 21 days to provide any related refund.
The IRS Has Finally Done Repaying The Unemployment Benefit Refund
The agency claimed that they already refunded $14.8 billion or roughly $1,200 per taxpayer. While some taxpayers received checks, others saw the refunds used to pay off bills or overdue taxes.
A revision in the statue exempted up to $10,0200 in unemployment income from federal taxes in 2020 for persons with total income less than $150,000 according to officials.
A large number of taxpayers had already submitted their taxes by the time the bill was approved in March 2021. According to the IRS , automated changes were made to apply the exclusion, amending 14 million returns and causing almost 12 million individuals to owing money back.