The problem was that most Americans had already submitted their 2020 tax forms, which represented a year in which the unemployment rate reached 14.7 percent at one point. The IRS reviewed those returns and has now finalized the process. The government is presently distributing 12 million refunds for $14.8 billion.
Thousands of people who claimed the jobless exclusion on their 2018 tax forms received letters from the IRS.To qualify for the exclusion, adjusted gross income for individuals and married couples must have been less than $150,000. Some taxpayers received refunds, while others had their excess cash allocated to unpaid taxes or other debts. Processing revised returns now takes more than 20 weeks (Russo, 2023).
The IRS reported 1.91 million unprocessed returns submitted this year as of December 23; 1.49 million of these returns require mistake correction or other special handling, while 414,000 are paper returns awaiting review and processing. Refunds are frequently issued after more or less than 21 days.
If you made a mistake, the IRS warns that your tax refund could take up to 120 days to arrive. Receive up to $1,200 via federal direct payments. Direct deposit is the quickest way to get your refund. Because there are no extra stimulus payments that will be distributed in 2022, next year’s tax return may likely be reduced.
