PEOPLE WHO ARE USED TO GETTING BIG REFUNDS FROM THE IRS MAY BE IN FOR A BIG SURPRISE THIS YEAR.
IN A REPORT OUT OF RHODE ISLAND, THE I.R.S. SAYS THAT BOTH CHILD CARE TAX CREDITS AND UNEMPLOYMENT MONIES COLLECTED WILL BE SUBJECT TO TAXATION FOR THE 2021 REPORTING YEAR. A REPRESENTATIVE SAID THAT IF YOU RECEIVED CHILD TAX PAYAMENTS LAST YEAR, YOU WON’T GET THAT CREDIT AT TAX TIME, BECAUSE THEY HAVE ALREADY RECEIVED HALF OF THAT CREDIT, WHICH WILL REDUCE THE AMONUT OF ANY REFUNDS. THE SECOND PART OF THIS IS THAT PEOPLE WHO RECEIVED UNEMPLOYMENT COMPENSATION BETWEEN JANUARY AND SEPTEMBER OF LAST YEAR WILL BE SUBJECTED TO INCOME TAX AS WELL. SOME WHO RECEIVED THAT MONEY MAY EVEN OWE MONEY TO THE I.R.S., OR MAY GET A MUCH SMALLER OR NO REFUND AT ALL. ALSO, SINCE THERE IS A BACKLOG OF RETURNS FROM LAST YEAR STILL BEING PROCESSED, THAT COULD HAPPEN AGAIN THIS YEAR, POTENTIALLY DELAYING YOUR REFUND CHECK. THE FILING DEADLINE IS APRIL 18th.
