IRS will automatically send refunds for unemployment tax breaks


IRS will automatically send refunds for unemployment tax breaks
Refunds will be sent directly to taxpayers, likely starting in May and continuing into the summer. (Source: CNN)

(CNN) – Americans who lost their jobs last year and have already filed their tax returns will have one less headache to deal with.

The Internal Revenue Service will automatically recalculate their returns to account for a new tax break found in the latest stimulus package.

The break is on the first $10,200 of unemployment compensation received in 2020.

The IRS made the announcement Wednesday.

Refunds will be sent directly to taxpayers, likely starting in May and continuing into the summer.

The provision is part of the $1.9 trillion stimulus package that President Joe Biden signed last month, but that was after millions of people had already filed their 2020 returns.

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