"The next phase will include the more complex tax returns, which the IRS anticipates will take through the end of summer to review and correct." "The first phase is underway and includes the simplest returns," the IRS said May 14. The IRS initially said it would take steps to automatically refund money this spring and summer to people who filed their tax return reporting unemployment compensation before the recent tax break for jobless benefits was put into place in March. The income cap is the same for singles and married couples filing joint returns.
#When to expect unemployment tax break refund software#
If you filed your return later in March or afterward, your tax software or tax professional would have been able to calculate your taxes based on the new rules.Īnd the exclusion only applies to households earning up to $150,000. If your modified AGI is $150,000 or more, you can’t exclude any unemployment compensation. I am telling the few affected clients to expect it sometime in June." Who shouldn't bank on the cashĮveryone shouldn't bank on receiving the extra money. "May is not over yet, maybe the IRS can still pull it off. "As with all things dealing with IRS, patience is advised and highly recommended," he said. "I still have not heard of anyone who has received a refund from the unemployment benefits tax change," said George Papadopoulos, a Novi-based financial adviser and CPA, who prepares taxes for his financial planning clients. Tax professionals tell me they're hearing similar complaints from some early filers. He figures he's owed more than $2,000 given his income tax bracket, once the IRS corrects that return, and he's eagerly watching his bank account for the money. But he filed his federal income tax return in early March before the rules changed. The worker at Ford Motor, who is single and faced 20 weeks of layoff last year, told me he now could exclude the maximum of $10,200 in jobless benefits from taxable income in 2020.
Many auto plants didn't begin to gear up production until May 18, 2020. Michigan's stay-at-home order to combat the spread of the coronavirus began March 24, 2020. Tens of thousands of auto workers found themselves suddenly out of work for eight weeks or more in 2020.
The IRS said it would first begin issuing that extra refund money to single taxpayers who do not have complex returns, such as single taxpayers who did not claim children or any refundable tax credits.īut I heard from an autoworker who told me that he received his regular tax refund March 17, a small amount that was less than $200, but as of May 26 he was still waiting for an estimated unemployment related refund of more than $2,000. Many Michigan autoworkers and others owed money
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