Skip to Content
Local Videos

IRS sending refunds to overpayers

By ,
Published 7:13 AM

(KYMA, KECY/CNN) - The IRS will be sending out millions of refunds for taxes paid on unemployment benefits.

All told, the agency is distributing upwards of $2.8 million refunds just this week.

The refunds are going to people who have already paid taxes on 2020 unemployment compensation. The reason, there's new legislation on the books that excludes those benefits as income.

The American Rescue Plan Act of 2020 excludes up to $10,200 in unemployment compensation per taxpayer paid last year.

Therefore, taxes paid on the benefits now count as overpayments. The IRS refunds mean most affected taxpayers won't have to file an amended return.

The agency says some 13 million taxpayers may qualify for the adjustment.

Article Topic Follows: Local Videos

Jump to comments ↓

Author Profile Photo

Dominique Newland

Dominique joined KYMA in June 2019 as a Sunrise anchor. She was born in New Jersey but raised in Carmel, Indiana.

You can reach her at dominique.newland@kecytv.com.

CNN

BE PART OF THE CONVERSATION

KYMA KECY is committed to providing a forum for civil and constructive conversation.

Please keep your comments respectful and relevant. You can review our Community Guidelines by clicking here

If you would like to share a story idea, please submit it here.