Millions of taxpayers can expect to receive checks worth $1,232 this year, according to the Internal Revenue Service (IRS).
This financial aid is provided by the government as part of its efforts to support individuals and families during the ongoing economic challenges caused by the COVID-19 pandemic, as stated in an article published by CNBC on January 9, 2023.
This is due to a provision in the American Rescue Act Plan, signed by President Joe Biden in March 2021, that allows eligible taxpayers to claim up to $10,200 in tax-free unemployment benefits.
Every year, Americans are required by the IRS to file their taxes by April 15th, which report their income and any taxes owed for the previous year.
An article published by the U.S. Bureau of Labor Statistics on May 13, 2020 stated that in 2020, the jobless rate in the United States reached an all-time high of 14.7 percent at one point due to the economic impact of the COVID-19 pandemic.
As a result, the IRS conducted a review of the 2020 tax returns filed by the majority of Americans to ensure that they were accurate and complete. According to the IRS, a total of 12 million refunds are being issued, worth a total of $14.8 billion. Refunds are typically issued in less than 21 days, either through direct deposit or by mail.
IRS may hold or delay the refund to verify your tax return information, check for fraud or if you have certain outstanding debt such as unpaid student loans or back taxes.