IRS Will Soon Issue Refunds for Tax-Free Unemployment Benefits

Charlene Rhinehart, CPA, The Motley Fool
·4 min read
IRS Will Soon Issue Refunds for Tax-Free Unemployment Benefits

Unemployment benefits caused a great deal of confusion this tax season. Fortunately, the unemployment tax nightmare that left many with reduced refunds or an unexpected tax bill is coming to an end. The IRS announced that it will start issuing refunds in May to eligible taxpayers who paid more unemployment taxes than required for benefits received in 2020.