IRS to recalculate taxes for those who received unemployment benefits, additional refunds to start in May

Local News

HONOLULU (KHON2) — To help taxpayers, the Internal Revenue Service announced that it will take steps to automatically refund money to people who reported unemployment compensation on their tax return before the recent changes made by the American Rescue Plan.

According to the Bureau of Labor Statistics, over 23 million U.S. workers nationwide filed for unemployment last year. For the first time, some self-employed workers qualified for unemployed benefits as well.

Get news on the go with KHON 2GO, KHON’s morning podcast, every morning at 8

The legislation, which was signed on March 11, allows taxpayers who earned less than $150,000 in modified adjusted gross income to exclude unemployment compensation up to $20,400 if married/ filing jointly and $10,200 for all other eligible taxpayers.

For individuals who filed their taxes prior to March 11, the IRS is taking steps to apply those changes, which may result in a refund.

The first refunds are expected to be made in May and will continue into the summer.

The IRS is still working to determine how many workers affected by the tax change already have filed their tax returns.

For more information, click here.

Copyright 2021 Nexstar Media Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

More Hawaii News

More Local News

Trending Stories