x
Breaking News
More () »

Unemployment recipients could get as much as $5,000 extra in latest tax refund

Under the latest stimulus package, you will not be not taxed on the first $10,000 of unemployment pay in 2020.

Great news for the millions of people who received unemployment benefits last year; you could get an additional $2,000 or $5,000 tax refund later this spring.

Were you an early filer? Well, that's good...and bad.

The good: if you received unemployment benefits, you probably have an bigger tax refund coming your way.

USA Today reports under the latest stimulus package, you will not be not taxed on the first $10,000 of unemployment pay in 2020.

That could mean up to an additional $5,000 back to you depending on your tax bracket.

But the bad news: this new break was passed only a few weeks ago by President Joe Biden and Congress, which means millions of people have already filed.

They didn't know it was coming and had no way of claiming it.

As a result, millions of people who already filed will have to wait till May, June or even July to see the additional money.

In addition, states now have to decide if they will follow suit and give a bigger refund.

What a mess.

Bottom line: don't file an amended return. The IRS will send you a bigger refund if you qualify for it.

Before You Leave, Check This Out