(RightWing.org) – The Biden administration is handing out a tax refund to millions of Americans – but not on actual earnings. The cash will only go to those who claimed unemployment benefits last year.
IRS tax refunds for COVID jobless benefits could start in days https://t.co/PfXIqEp3DF
— News19 WLTX (@WLTX) April 30, 2021
Under the $1.9 trillion stimulus package Biden signed in March, the IRS will waive federal income tax on up to $10,200 in unemployment benefits for anyone who earns less than $150,000 a year. Couples who file jointly can exclude up to $20,400 in benefits if they were both unemployed. Of course, many people had already filed their taxes before this came into force. The IRS has said they don’t need to refile – it will automatically send them a refund.
Around 40 million Americans claimed unemployment benefits in 2020, with the average claimant getting $14,000. There’s a strong argument that it makes no sense for the government to hand out money in benefits then take some of it back in tax, but it’s also hard to say why benefits should get a tax break when money earned from actual work doesn’t.
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