GREENVILLE, S.C. (WSPA) – Tax refunds for those on 2020 Unemployment Benefits are expected to be sent out starting this month. Many families will also soon start seeing advancements on their Child Tax Credit beginning this Summer. The big take away on both accounts— the sooner you file, the quicker you can expect your return.
Most people already saw this benefit when filing this year’s tax return, if you filed before March 11th. However, after that date is when President Biden filed the American Rescue Plan which made all unemployment benefits up to $10,200-dollars non-taxable for individual taxpayers.
“People who filed their taxes before this date however paid taxes on their Unemployment Benefits which is now considered non-taxable,” said Partner with Upstate CPA’s, Salil Mathur.
He said the IRS is now required to refund that money to taxpayers who had 2020 Unemployment Benefits that paid their taxes unnecessarily.
Mathur said just don’t expect your money right away.
“So we’re seeing tax refunds delayed from usually about a two to three-week turnaround,” Mathur said. “This year it’s been closer to six to eight weeks and the state of South Carolina is worse than that.”
He said to also make sure to keep up with the DEW’s task to search for work.
“Make sure you’re compliant with South Carolina laws when it comes to your Unemployment Benefit requirements because South Carolina is completely administering these benefits,” Mathur explained. “So if you aren’t doing what they want you to do they’ll take the money from you.”
As for advancements on your Child Tax Credit, starting in July of this year…
“Three-hundred dollars for children who are under six and $250-dollars for any children above six, between the ages of six and 18, each month until the end of the year,” said Mathur.
They’re also fully refundable.
The IRS is basing that on your 2020 tax return. If you haven’t filed, they’ll base that on your 2019 return.
“Just like anything else it’s an advanced payment,” Mathur said. “So if on your 2021 tax return you claimed more of a credit than you were eligible for in these advanced payments then you’re going to have to pay it back.”
He said it’s all about making sure you actually get your taxes filed to make sure your return is accurate, because any inaccuracies could impact how big of a return you get for your Child Tax Advancements.
He also noted if you don’t file by the deadline, make sure you get an extension in because penalties and interest accrue.
Essentially, the quicker you do it, the faster you get your return.
This year’s official deadline to get your taxes filed and into the IRS on time is May 17th.