How many Americans will receive the $1600 Tax refund payment?
Another lot of refunds have been returned to taxpayers who received unemployment aid last year due to changing tax laws.
The IRS reported that another 1.5 million taxpayers will receive refunds averaging more than $1,600 as it continues to adjust unemployment compensation from previously filed income tax returns.
This is the fourth repayment after Congress changed tax laws relating to unemployment aid. Usually unemployment benefits are subject to federal tax, but President Biden's American Rescue Plan set a limit of $10,200 before any tax is paid. Any unemployment aid under this value would not be subject to any tax and those who overpaid are being retroactively refunded.
For this round, the IRS identified approximately 1.5 million taxpayers who are now expected to receive a refund. The refund average is $1,686.
The refunds come as the extra federal unemployment benefits are due to end in September. The IRS has had a historic number of tax returns to account. Currently, the backlog stands at a staggering 35 million tax returns to manually process.
Help with the Child Tax Credit:
How do I receive my refund?
Most taxpayers do not need to do anything to receive the refund.
However, the IRS notes that taxpayers should file Form 1040-X if they are now eligible for new reductions due to the change in tax law.
Taxpayers should file an amended return if they:
Taxpayers should not file an amended return if they:
The IRS says those who receive a refund will receive a letter within 30 days explaining what kind of adjustment was made to their tax returns and why they are able to receive some of it back.