IRS Begins Correcting Tax Returns for Unemployment Compensation Income Exclusion

From irs.gov: The Internal Revenue Service will begin issuing refunds this week to eligible taxpayers who paid taxes on 2020 unemployment compensation that the recently-enacted American Rescue Plan later excluded from taxable income. The IRS identified over 10 million taxpayers

IRS Will Recalculate Taxes on 2020 Unemployment Benefits and Start Issuing Refunds in May

Normally, any unemployment compensation someone receives is taxable. However, a recent law change allows some recipients to not pay tax on some 2020 unemployment compensation. The IRS will automatically refund money to eligible people who filed their tax return reporting

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