Americans who collected unemployment insurance in 2020 and filed their taxes before claiming a new tax break on the benefits can expect to receive an automatic refund in May, the IRS announced this week.
The agency announced last month that eligible individuals would not have to file an amended return on their own to claim the tax waiver on up to $10,200 of the benefits.
The waiver, which is part of the American Rescue Plan (ARP) signed into law by President Joe Biden in March, applies to individuals and couples who earned less than a modified adjusted gross income of $150,000 in 2020.
It increases to up to $20,400 for couples who are married and filing jointly if both spouses collected unemployment benefits.
The IRS plans to refund any tax payments to individuals first, followed by couples who filed jointly. The repayments will come in phases, continuing through the summer. The agency notes that most people will not need to take action on their own to get the refund.
