New stimulus check for the unemployed might be coming in May

[Andy Meek]

The IRS sent out an important update on Wednesday that provides some clarity for people receiving some of the benefits associated with the $1.9 trillion stimulus legislation that President Biden signed into law several weeks ago.

Basically, for people who've already filed their taxes, the tax agency is going to automatically refund any necessary money this spring and summer for people who reported receiving unemployment compensation before the changes made by the stimulus law. That law, which Biden signed on March 11, lets taxpayers who earned up to $150,000 in modified adjusted gross income exclude any unemployment compensation they received, up to $20,400 if married filing jointly (and $10,200 for all other eligible taxpayers). Before this, especially if someone had become jobless for the first time, they might not have immediately realized that jobless benefits are taxable income, something that the stimulus law changes for 2020 unemployment benefits only. This means that, because some people might have gone ahead and reported the jobless aid income and paid taxes on it accordingly, they'll be getting back a refund after the IRS recalculates their taxes -- a refund that will sort of amount to a new stimulus check.

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New stimulus check for the unemployed might be coming in May originally appeared on BGR.com on Thu, 1 Apr 2021 at 17:47:05 EDT. Please see our terms for use of feeds.

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