Today Is Not Tax Day!

The American Rescue Plan Act has a a tax refund that specifically excludes $10,200 in 2020 unemployment compensation from being taxable as a way to give those who struggled financially a break on their taxes. Americans on unemployment last year, likely filed their taxes based on the entire amount of unemployment compensation they received, especially if they filed taxes before the bill passed. Now, they might be getting a large check back to them and they don't have to do anything to receive it.

"the IRS will determine the correct taxable amount of unemployment compensation and tax. Any resulting overpayment of tax will be either refunded or applied to other outstanding taxes owed." said the IRS.

It should be noted that the refund of up to $10,200 is only for households that reported an adjusted gross income of $150,000 or less in 2020, also, the amount you get back depends on how much you needed to pay in taxes.

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