Money is on the way from the IRS to thousands of Louisiana residents who paid too much in taxes.
The Internal Revenue Service is issuing refunds to folks who paid taxes on unemployment benefits during 2020. That money should have been excluded from reported income for last year under the American Rescue Plan. But in a news release, the IRS reports more than 400,000 people paid taxes on that income.
Congress passed a measure to keep the IRS from taxing the first $10,200 of unemployment compensation received in 2020 if the family made less than $150,000.
The IRS is sending out more than $500 million dollars to taxpayers across the country.
This money could eventually be going out to millions of taxpayers. The IRS has discovered about 16 million taxpayers who could be in line for an adjustment. This latest round of payments will be going out to more than 400,000 taxpayers.
So far this year, the IRS has send out more than 11 million refunds with a price tag of more than $14 billion dollars. The IRS is working to correct these overpayments so you won't have to file an amended tax return.
If you are in line to get a payment, you will first get a letter from the IRS to let you know what kind of adjustment is being made. The letter will come within 30 days of the refund to also let you know how much you will be receiving.
“The review of returns and processing corrections is nearly complete as the IRS already reviewed the simplest returns and is now concentrating on more complex returns,” the agency said.
Most of these payment adjustments will be sent out by the end of the year. You do not have to take any further action to get your payment.
If you have other questions about this refund, check out the IRS FAQ page.
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