IRS Unemployment Relief Refund Update

( We’re heading towards the end of the summer, and millions of Americans are still waiting on the next round of tax refunds from the 2020 unemployment compensation scheme…but when are they coming?

Well, the latest news from the Internal Revenue Service is that the payments will “continue through the summer,” and no specific guidance on what happens as we head towards the end of the season. Many people still have not received their funds, and no additional guidance has been provided by the government since last month.

The last two announcements from the IRS said that the last two batches of payments were initiated on Wednesday. Some recipients have received their direct deposit payments on July 14 and July 28. August 11 marked two weeks since the July 2 update, but no official schedule on payments through August has been confirmed.

The unemployment compensation scheme was announced in March of this year and comes as part of the American Rescue Plan Act, the scheme dreamed up by newly-inaugurated President Joe Biden that he said would solve America’s economic problems. The plan excluded up to $10,200 in taxable income for anybody who received unemployment benefits in 2020 during the COVID-19 pandemic.

However, because the change didn’t come into effect until March 11, many Americans who filed their taxes before that date didn’t receive the discount on their taxes.

The IRS has since said that it is working quickly to pay back all Americans who overpaid, starting with those who had the simplest tax returns.

It means you should probably expect to be among the final remaining recipients if your tax return was complex.

The IRS has confirmed that the average refund people have received so far is $1,686.