![]() Tax professionals tell me they're hearing similar complaints from some early filers. He figures he's owed more than $2,000 given his income tax bracket, once the IRS corrects that return, and he's eagerly watching his bank account for the money. But he filed his federal income tax return in early March before the rules changed. The worker at Ford Motor, who is single and faced 20 weeks of layoff last year, told me he now could exclude the maximum of $10,200 in jobless benefits from taxable income in 2020. Many auto plants didn't begin to gear up production until May 18, 2020. Michigan's stay-at-home order to combat the spread of the coronavirus began March 24, 2020. Tens of thousands of auto workers found themselves suddenly out of work for eight weeks or more in 2020. The IRS said it would first begin issuing that extra refund money to single taxpayers who do not have complex returns, such as single taxpayers who did not claim children or any refundable tax credits.īut I heard from an autoworker who told me that he received his regular tax refund March 17, a small amount that was less than $200, but as of May 26 he was still waiting for an estimated unemployment-related refund of more than $2,000. Many Michigan autoworkers and others owed money But as we near the end of May, many people say they didn't receive any money yet. The IRS said periodic payments would be made from May through summer. Under the rule change, taxpayers are able to exclude up to $10,200 of unemployment benefits received in 2020 for a single person from taxable income - or as much as $20,400 for married couples filing jointly. 12 - a month before the change - and has estimated that more than 10 million taxpayers in this group filed returns before the law was changed. The IRS began accepting 2020 tax returns Feb. You can talk to one for free at a free tax clinic near you.The group who could be owed more money involves those who filed their 2020 tax returns in February and early March and paid income taxes on all their unemployment benefits received in 2020. If you can not file your tax return by the deadline, talk to a tax preparer to find out what to do. You should be able to get the credits even if you file late, but in some cases you may have to pay a penalty for filing late. Can I get free help filing my taxes and getting the money for these credits? But some benefits programs may have rules about how long you can keep it in your bank account without spending it. It will not count as income against DTA cash benefits, SNAP food benefits, SSI, Medicaid, or public housing. Will the money count against my public benefits, like welfare or SNAP/Food Stamps? You may get the money as soon as 7-10 days after you file. You might be able to get these credits if you are married to a US citizen or to a lawful permanent resident. If you qualify for the credits but you are not a US citizen, you can still get these credits if you are a lawful permanent resident. Generally, the child had to be under 19 years old in 2019.īut a full-time student counts if he or she was under 24 years old in 2019.Īlso, children who are permanently and totally disabled count no matter what age they are- even if they are adults. To get a higher credit because a child lived with me, how young does the child have to be? Visit to learn more! FindYourFunds is a website from community organizations and legal services in Massachusetts. You may be able to get money back from both the federal and state governments by filing your taxes and claiming these credits. To get the credit, you need to file a state tax return and send it to the Massachusetts Department of Revenue. Massachusetts also has an Earned Income Credit (EIC), to help low-income working people get money back from the state government. Even if you didn't earn enough to owe income tax, you can get the EITC! To get it, you need to file a federal tax return and send it to the IRS. The Earned Income Tax Credit (EITC) is a way for low-income working people to get money back from the federal government.
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