IRS issues 12 million tax refunds after correcting 2020 returns
The Internal Revenue Service issued 12 million tax refunds to Americans who paid too much in taxes on unemployment benefits they received in the first year of the pandemic.
The agency corrected 14 million 2020 tax returns related to unemployment compensation, resulting in $14.8 billion in refunds that averaged $1,232 each. The IRS started correcting the returns in May 2021.
The IRS undertook the tax probe because the American Rescue Plan, which excluded up to $10,200 in unemployment aid from being taxed in 2020, went into effect after some taxpayers had already filed their tax returns for the 2020 tax year.
“Some taxpayers received refunds, while others had the overpayment applied to taxes due or other debts,” the IRS said in a statement. “In some cases, the exclusion only resulted in a reduction in their adjusted gross income.”
https://finance.yahoo.com/news/irs-issues-12-million-tax-refunds-after-correcting-2020-returns-205016861.html
That's because the GOP underfunded the organization.
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