Tax refunds

Tax refunds: how to know if you will receive an extra for paying more in 2020

The Internal Revenue Service said it is paying tax refunds to those who received unemployment benefits in 2020. How do you know if you are one of the chosen ones?
The Internal Revenue Service (IRS) is returning $15 billion in tax refunds to those who overpaid unemployment benefits in 2020. If you want to know if you are one of these lucky ones that you are about to get your refund in Globelivemedia, we will tell you how you can verify it.

Just last week, the Internal Revenue Service announced that it was finishing correcting 14 million tax returns from taxpayers who overpaid taxes on unemployment compensation in 2020. And it is because of the crisis of the Covid-19 pandemic. , the federal government allowed up to $10,200 of income to be excluded from paying taxes if it came from unemployment insurance.
The result was that 14 million refunds, averaging $1,232, were approved by the IRS a few days ago. Although the tax agency has said that it has processed all tax returns that required this refund, there may be taxpayers who filed their 2020 taxes before the unemployment tax exemption was authorized.

If you are one of the taxpayers who are in this situation, then you should send the tax agency now an amended tax return for 2020, to claim the money that the IRS owes you.
Now, if you’re not sure if you overpaid taxes in 2020, then you should check your tax return for that year using your IRS online account. Once you have access set up, you can access this information and other information of interest such as your adjusted gross income, your payment history, and your tax return transcripts from prior years, including 2020.

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Once you have verified your tax transcript, you should verify the information on your Form 1040, Schedule 1, Line 8, to see if you included the income exclusion of up to $10,200 from unemployment benefits tax payment.

Use the “Unemployment Compensation Exclusion Worksheet” at the link below.

If you received unemployment income in 2020 and didn’t claim the exemption even though you were eligible, you may be able to get an additional tax refund from the IRS by filing an amended return.

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