The IRS has announced that it has recently completed the correction of 2020 tax returns. These corrections included overpayments for unemployment benefits that workers came to receive in that year. The IRS agency issued 12 million tax refunds due to this situation. This means that many, many refunds have been issued.
The average of these refunds is $1,232. Thus, this does not mean that all taxpayers have had this refund from the IRS At a minimum. Some of them have had a larger refund, while others have had a much smaller refund. It all depends on each taxpayer’s personal and financial situation.
The way the IRS announced this change to correct 2020 tax returns has been through letters. Therefore, check your mail carefully to see if you have received one of these corrections. Receiving one of these letters means that we will have a chance to receive a little extra money from the IRS.
Why has the IRS tax audit occurred?
This IRS tax overhaul has caused many returns to increase with respect to 2020 returns. The impetus for these revisions was due to the American Bailout Plan Act of 2021, signed into law by Joe Biden in March 2021. Since some taxpayers had filed prior to this law, the Internal Revenue Service had to check all of those prior returns.
“Some taxpayers received refunds, while others had the overpayment applied to taxes owed or other debts.” On top of that, “in some cases, the exclusion only resulted in a reduction in their adjusted gross income.”, announced the IRS.
The majority of citizens just need to wait for the tax refund. So if you haven’t received a Stimulus check yet it is possible that you can get it in a matter of time. Check your mail from time to time to be sure that you don’t put it in the garbage bin.
12 million refunds to taxpayers
All taxpayers who had a low gross income of less than $150,000 got the right to pay no taxes on unemployment benefits. This caused everything to change dramatically on most returns. By not taxing this portion of the money earned, taxpayers had to receive part of the taxes from the IRS.
Although many taxpayers have been waiting a long time for these refunds, the IRS is gradually sending the money. According to the Internal Revenue Service, all the corrections have been completed, so now they only need to send the money to all those who deserve this change in their tax returns.
Any taxpayer who pays their taxes on time will not have to do anything more than wait for the IRS to refund this correction. Thus, there is no need to take any extra action other than to wait and be patient to receive this money that will come in handy after the holiday season.