As the IRS struggles with its backlog, thousands of taxpayers could still be waiting to receive a refund for unemployment benefits they received during the Covid pandemic.

Pandemic relief legislation, the American Rescue Plan Act waivedFederal tax up to $10,000.00 of unemployed benefits that a person collects in 2020 (a year when the unemployment rate is at its highest) climbed higherMore than at any other time since the Great Depression.

Many people who are eligible for this tax relief had already filed their tax returns each year before President Joe Biden signed it on March 11.

They may be entitled to a refund if they pay more than their federal tax bill. In other instances, the overpayment can be applied to any unpaid taxes or debts.

The IRS has so far identified over 16 million people eligible for this tax relief. According to most recent statistics, the IRS has sent out over 11.7 Million refunds totaling $14.4 billion. data.

Zahlungen startedThe IRS stated that it would be continuing into the summer or fall in May. The number of people still waiting is unknown. Not all potential candidates identified by the IRS will be eligible.

The IRS plansThe agency plans to issue another tranche before the end the year. About 430,000 of the refunds were sent by the agency in its last round, which totaled more than $510million. On average, the refunds reached $1,189.

A spokesperson for the IRS did not specify how many payments it is making or when.

Taxpayers have been impacted by delays in large part complex returns. For example, they could be a married couple whose spouses received benefits in 2020.

The tax calculations of married taxpayers can be more difficult than for single taxpayers. A spouse can exclude from the federal tax up to $10,000. However, this doesn’t necessarily mean that the spouses, when they are a unit of tax, get tax waivers on twice the amount ($20,000.

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Consider a couple where one spouse receives $5,000 and the other gets $25,000. The couple could exclude $15,200 from taxes (instead the $20,400 total). The reason is that the benefits of the second spouse are limited to $10,200.

An agency statement from November stated that “The review and correction of returns is near completion as the IRS reviewed the easiest returns and is now focusing on the more complex returns.”

Some taxpayers are not eligible for the unemployment tax cut. You can’t, for instance. eligibleTheir modified adjusted gross (which does not include unemployment compensation), was at least $150,000

Congress has yet to pass legislation providing a tax cut for benefits in 2021.  

An IRS backlog is affecting individual tax returns. The IRS is dealing with a backlog of individual tax returns. hadAs of December 4, there were 6.7 Million unprocessed individual return.

After the outbreak of the Pandemic, the IRS had an active year. It implemented new rules for unemployment compensation, stimulus checks and monthly payments of enhanced child tax credits. The IRS has been dealing with an array of issues. elevated rate of identity fraud.

The most unprocessed returns are those that have errors and require special handling by an IRS employee. The IRS can sometimes take longer than 21 days to process these returns, with some cases taking as long as 90 or 120 days.

On May 1, 2009, the number of special-handling returns reached a historic high of 9.8 millions. The agency managed to reduce that figure down to 61,000 by December 4.

According to the agency, “We are trying hard to overcome the backlog.” The IRS can be reached for information about your status or to file another tax return.

The following are some examples IRS websiteAnswers to frequently-asked questions regarding tax refunds.

Some of these are exceptions, though.

Taxpayers may qualify for a credit or deduction if they exclude up to $10,000.00 of unemployment compensation. Taxpayers would have to file an amended tax returnYou can claim the new credit/deduction.

However, the IRS can calculate these payments and automatically send them to you. Also, the IRS can be reached at 866-888-4000. sending noticesSome taxpayers may be eligible for the child credit. Taxpayers who respond to this notice do not need to amend their returns.

The following is available for taxpayers IRS websiteFor questions regarding the unemployment tax cut.