Tax refunds of $1,600 are on the way...here's who gets the money

 

Tax refunds of $1,600 are on the way...here's who gets the money

The US bailout provided direct payments to millions of Americans. The costs to that plan, which was signed into law in March, came on the heels of two other payments to ease the burden of the COVID-19 pandemic. There is one part of President Joe Biden's plan that the IRS is still trying to push.

According to the IRS, it counts more than 1.5 million recoveries for a particular group of people: those who lost their jobs during the COVID-19 pandemic and received unemployment payments.

The US bailout excluded up to $10,200 in 2020 in unemployment compensation from taxable income accounts. The changes apply to individuals and couples who earn less than $150,000.

Many will get their money owed soon, if not already. According to a press release:

Direct deposit refunds will begin on July 28, and paper check refunds will begin on July 30. This is a round of refunds related to the unemployment compensation exclusion clause.

Since May 2021, the IRS says it has issued more than $10 billion in refunds to more than 8.7 million taxpayers.

You should not do anything to receive this fourth round of income tax adjustments.

She did not file Schedule 8812 with the original filing to claim the additional child tax credit and is now eligible for the credit after excluding unemployment compensation;

Did not file an EIC schedule with the original return to claim the Earned Income Tax Credit (with eligible dependents) and are now eligible for the credit after excluding unemployment compensation;

If the IRS adjusts your taxes, you will generally receive a letter within 30 days of the change.