LOS ANGELES (CBSLA) — Taxpayers who already filed their 2020 federal income taxes and included unemployment relief payments in gross earnings may be getting some unexpected money back, the IRS announced Friday.
The deadline for people to file their federal tax returns was moved from April 15 to Monday, May 17, but the IRS said about 10 million people who filed in advance and factored in unemployment in their gross income could be receiving refunds of varying amounts.READ MORE: Multiple People Injured In 3-Car Crash In Van Nuys
“These corrections are being made automatically in a phased approach, easing the burden on taxpayers,” the IRS said in a statement. “The first phase is underway and includes the simplest returns. The next phase will include more complex tax returns, which the IRS anticipates will take through the end of summer to review and correct.”
According to federal officials, the reason for the refunds is part of provisions of the American Rescue Plan Act of 2021 which exempts up to $10,200 in unemployment benefits for households with gross incomes up to $150,000.
Officials said the $10,200 is the limit of the allowance, not the amount that might be refunded.READ MORE: Pursuit Ends With Standoff in La Crescenta, Passenger In Custody
“Refund amounts will vary, and not all adjustments will result in a refund,” the IRS stated.
Those who qualify for a refund will receive a direct deposit if they filed online and overpaid, while others who sent payments to the IRS via mail will be sent refunds the same way.
“The IRS will continue to send refunds until all identified tax returns have been reviewed and adjusted,” according to the agency.MORE NEWS: Millions In Counterfeit Cialis Pills, Knock-Off Designer Apparel Seized At Port
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