Great news for the millions of people who received unemployment benefits in 2020. You could get an additional $4-5,000 tax refund later this spring.
Were you an early filer? That’s good — but also bad.
The good: If you received unemployment benefits, you probably have a bigger tax refund coming your way.
USA Today says that under the latest stimulus package, you will not be taxed on the first $10,000 of unemployment pay in 2020.
That could mean an additional $2-5,000 back to your wallet, depending on your tax bracket.
But the bad news: This new break was passed only a few weeks ago by President Biden and Congress, which means millions of people have already filed.
They didn’t know it was coming and had no way of claiming it.
But from the “doesn’t that stink” file, why couldn’t Congress come up with this exemption last year?
As a result, millions of people who already filed will have to wait until May, June or July to see this additional money.
In addition, states now have to decided if they will follow suit and give a bigger refund.
What a mess and that stinks.
Bottom line: Don’t file an amended return. The IRS will send you a bigger refund if you deserve it.