(WJW) – The Internal Revenue Service says it has refunded nearly 12 million taxpayers after making corrections to their 2020 tax returns.
According to the IRS, the corrections were needed as a result of the American Rescue Plan Act. When President Joe Biden signed the bill into law in March 2021, it excluded “up to $10,200 in unemployment compensation from taxable income calculations.”
But, the change came after some taxpayers had already filed their taxes, causing them to overpay on unemployment compensation in 2020.
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This impacted single taxpayers and married couples with modified adjusted gross income below $150,000 in 2020.
The IRS says it fixed about 14 million returns, resulting in refunds totaling $14.8 billion and averaging about $1,232 each. Affected taxpayers either received a refund or had the funds applied to taxes due or other debts.
Those impacted should have received a letter about the corrections. The IRS stresses keeping the letter for tax records.
Eligible taxpayers who didn’t get a correction from the IRS might have to file an amended 2020 tax return to claim the refund.
If you believe you qualify for a refund, you can visit the IRS website for more details.
