IRS to Start Issuing Unemployment Tax Refunds in May

March 31, 2021, 9:41 PM

The IRS will begin sending refunds in May to individuals with 2020 jobless benefits who filed tax returns before they could claim new tax relief included in the latest pandemic relief package, the agency said Wednesday.

The package allows taxpayers who earned less than $150,000 to exclude unemployment compensation of up to $10,200 from federal taxes or $20,400 if married filing jointly. As many as 40 million Americans received unemployment insurance benefits in 2020, according to The Century Foundation.

The IRS previously said it would automatically send refunds to anyone who filed a return...

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