Pascrell Announces IRS Refunds to Unemployment Insurance Recipients
Paterson, NJ, April 1, 2021
U.S. Rep. Bill Pascrell, Jr. (D-NJ-09), the Chairman of the House Ways and Means Subcommittee on Oversight, today announced that the Internal Revenue Service (IRS) would send refunds later this spring and summer to Americans who reported unemployment compensation on their tax returns before changes enacted by the signing into law on March 11 of the American Rescue Plan by President Biden. Most of these taxpayers will not have to refile an amended return.
Under the landmark American Rescue Plan, certain taxpayers are permitted to exclude $10,200 of unemployment compensation from their income. Chairman Pascrell has been pressuring the IRS for a fix for the millions of Americans who already filed their taxes before March 11.
“I am gratified that the IRS listened to our demands and will be giving taxpayers this flexibility,” said Chairman Pascrell. “While passage of the American Rescue Plan provides unprecedented tax relief for unemployment benefit recipients, its passage during the filing season also created confusion for many taxpayers who have already filed their returns. Americans who did not know about the new unemployment tax break when they filed can rest assured they will receive refunds if they have already reported unemployment compensation. With millions under unprecedented stress and strain, this was essential. I will closely monitor the situation to ensure the IRS fulfills its word today.”
Pascrell concluded, “In the interest of making sure all eligible Americans take advantage of the EITC, it will be important for the IRS and tax preparers to make clear to certain filers on the borderline of eligibility that they should file an amended return to claim this credit.”
One group of taxpayers that should file amended returns are those newly eligible for additional federal credits not already claimed on the original tax return, including taxpayers who did not originally claim the Earned Income Tax Credit but who now may be eligible because the exclusion reduced their income.