(WJW) — As millions more stimulus checks go out to Americans, some are wondering about unemployment extensions.
Here is how it will work:
According to the U.S. Dept. of Labor, the American Rescue Plan Act expanded the number of weeks many will be able to get unemployment insurance benefits.
It will provide an additional $300 in weekly benefits and continue $100 for Mixed Earner Unemployment Compensation through Sept. 6, 2021.
Last month, the department of labor said it knew states would need time to get ready to accomodate the extensions and modifications, with it reportedly taking until the middle of April to prepare.
The Internal Revenue Service (IRS) recently announced it will automatically refund money to people who filed their tax return reporing unemployment compensation before the recent changes made by the American Rescue Plan.
“The legislation, signed on March 11, allows taxpayers who earned less than $150,000 in modified adjusted gross income to exclude unemployment compensation up to $20,400 if married filing jointly and $10,200 for all other eligible taxpayers. The legislation excludes only 2020 unemployment benefits from taxes,” a release from the IRS states.
The IRS says, because this change happened after some filed their taxes, it will take steps this spring and summer to make changes to those returns, which could mean a refund. The first refunds should be made in May and will continue after that, according to a release.
The IRS says it will do recalucations in two phases for those who have already filed, starting with taxpayers eligible for the up to $10,200 exclusion. “The IRS will then adjust returns for those married filing jointly taxpayers who are eligible for the up to $20,400 exclusion and others with more complex returns,” the release states.
The IRS has additional information on its website.