Hey New York-Check Your Account for A $1600 Refund from the IRS
You could be getting a "bonus" $1,600 from the IRS as soon as today. If you meet these qualifications you should check your bank account or mailbox.
- Lost your job during the COVID-19 pandemic
- Received unemployment benefits in 2020
- Household income was under $150,000
The Internal Revenue Service reported that another 1.5 million taxpayers will receive refunds averaging more than $1,600 as it continues to adjust unemployment compensation from previously filed income tax returns.
This refund is possible due to the American Rescue Plan Act of 2021 which excluded up to $10,200 in 2020 unemployment compensation from taxable income calculations. If you happen to be one of the qualified candidates check your bank account. Direct deposits went out Wednesday July 28th and paper checks are starting to be mailed out today.
If you owe back taxes the IRS will apply this as a payment on those debts. If you don't owe you don't have to do anything. Adjustments to your return have already been made and payments are heading out. According to CBS6 Albany, over $10 billion have been issued in refunds since May of 2021.
Here is a partial checklist for taxpayers. You do not need to file an amendment if:
- You already filed a tax return and did not claim the unemployment exclusion; the IRS will determine the correct taxable amount of unemployment compensation and tax;
- You have an adjustment, because of the exclusion, that will result in an increase in any non-refundable or refundable credits reported on the original return;
- You filed a married filing joint return, live in a community property state, and entered a smaller exclusion amount than entitled.
For full details click HERE.