Taxpayers who already file their 2020 returns should not make amendments to take advantage of the new $ 1.9 trillion pandemic relief law, a tax break created by the Commissioner of Internal Revenue Service, Charles Retig, told lawmakers on Thursday, that The IRS will automatically send. Refund to those who qualify.
Mr. Rettig, speaking at a congressional hearing, was referring to a provision in the law that provides a tax exemption on the first $ 10,200 of unemployed benefits collected in 2020 by unemployed workers whose families earned less than $ 150,000. .
“We believe that we will automatically be able to issue refunds involving $ 10,200,” Mr. Rittig said.
According to The Century Foundation, Approximately 40 million Americans Received unemployment insurance last year.
The most recent stimulus bill passed earlier this month to include tax changes, tax changes to the December aid package, and economic impact payments have been hampered, putting severe pressure on the IRS. The agency said on Wednesday that tax day would be pushed back by a month, 15 April to 17 MayTo give himself and the taxpayers more time to handle returns and refunds.
The Treasury Department and the IRS are also in the running to develop new rules and updated systems to reflect other aspects of the March relief law.
Treasury officials said in a briefing on Thursday that they are working with the IRS to develop a new online portal Extended Child Tax Credit, Which would provide up to $ 3,600 per child under the age of 6 and up to $ 3,000 for children ages 6 to 17, even if a family earns enough to pay income tax.
Officials said the portal would allow taxpayers to upload relevant data such as mid-day payment adjustments.
Treasury officials also said that the department is working on additional guidance on how states can use the funds included in the relief legislation. If they decide to cut taxes after receiving aid, clarity will be included on how states should pay the relief amount.