Thousands of taxpayers may still be waiting for a tax refund on unemployment benefits collected during the Covid pandemic, as the IRS grapples with a backlog of tax returns.
The American Rescue Plan Act, a pandemic relief law, waived federal tax on up to $10,200 of unemployment benefits a person collected in 2020, a year in which the unemployment rate climbed higher than any time since the Great Depression.
However, many people eligible for the tax break had filed their annual tax returns before President Joe Biden signed the legislation on March 11.
That means they overpaid their federal tax bill and may qualify for a refund. (In other cases, an overpayment is applied to unpaid taxes and debts.)
To date, the IRS has identified more than 16
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