The Internal Revenue Service (IRS) is continuing to issue up to $1,232 tax refunds to taxpayers this 2023. To date, IRS has already issued 12 million refunds worth $14.8 billion.
In March 2021, U.S. President Joe Biden signed a major provision to the American Rescue Act Plan. This provision allowed eligible taxpayers to claim tax-free unemployment benefits of up to $10,200. Unfortunately, the unemployment rate that year was as high as 14.7%. Correspondingly, the IRS is now issuing 12 million refunds with a total worth of $14.8 billion. This means that an average of $1,232 is issued by the IRS to millions of taxpayers.
According to Russo, to date, it takes over 20 weeks to process amended tax returns. As of December 23, 2022, the IRS announced that it has received 1.91 million unprocessed tax returns. Among these, 1.49 million tax returns require correction and 414,000 paper returns are waiting to be reviewed. The process to issue tax refunds normally takes less than 21 days. However, if corrections are required, the IRS warned that the process could take over 120 days. To be able to receive tax refunds as soon as possible, the direct deposit option must be selected.
Who is eligible for these tax refunds?
According to Russo, to be eligible for the tax refunds, single and married filers must have an adjusted gross income of no more than $150,000. If a filer believes they are eligible for the employment exclusion and it was not corrected by the IRS, they must file an amended 2020 tax return. According to IRS, in some cases, the exclusion only reduced the taxpayers’ adjusted gross income. They have already distributed mails to inform taxpayers of the corrections and reminded them to keep these mails with the tax records. However, IRS suggests that if taxpayers have already claimed the unemployment exclusion on their taxes, they may not do so anymore.