GREENSBORO, N.C. — Remember when the IRS confirmed 10 million taxpayers would be getting refunds on unemployment benefits they paid taxes on? Well, those refunds are going out.
A few folks let us know they woke up to payments from IRS TREAS 310. Their amounts are different, depending on how much unemployment they received and their taxes, one payment was $209 the other $165.
There are two big questions to answer about your payments: When and how? Let's tackle when will you get yours first.
WHEN WILL YOU GET YOUR REFUND?
Remember, 10 million people are getting this refund. In the first phase of payments: taxpayers with the simplest returns including single taxpayers, with no child credits or refundable tax credits.
The next phase includes taxpayers with more complex returns, these include couples filing as married jointly.
The phases will continue through the end of the summer.
HOW WILL YOU GET YOUR REFUND?
If the IRS has your direct deposit info, you'll get it that way. If valid bank info isn't available, the refund will be mailed as a paper check to the address on record.
If you're wondering if you'll get this refund or why folks are getting it, The American Rescue Plan allowed taxpayers to exclude up to $10,200 in unemployment benefits from their Adjusted Gross Income. Because of that, taxpayers didn't have to pay taxes on that income, but the legislation took effect after many filed returns and paid that tax, which is why the IRS is now having to give refunds.
CAN THIS REFUND BE GARNISHED? The IRS confirms:
These refunds are subject to normal offset rules, such as past-due federal tax, state income tax, state unemployment compensation debts, child support, spousal support, or certain federal nontax debts (i.e., student loans). The IRS will send a separate notice to the taxpayer if the refund is offset to pay unpaid debts.