Last month many Americans must have received a new payment in their accounts. However, many of them didn’t ask for it, weren’t expecting it, and had no idea of what it was about.
Well, if the transaction is listed as IRS TREAS 310, then you’ve been refunded for taxes you’ve paid that you weren’t supposed to pay. So, what is happening? What is the IRS 310 tax relief?
2020 Unemployment benefits are tax-free
Before understanding the IRS 310 tax relief, we need to take a step back and understand a few things.
As you certainly know, many Americans had to renounce their job in 2020 due to the pandemic.
For them, the government had provided unemployment benefits: funds for people who had lost their job or were incapable of doing their job because of the pandemic and the lockdowns.
As it always happened, however, there were taxes to be paid on those received funds that many Americans have regularly paid.
The American Rescue Plan, however, has now signed a law that makes the fir $10,200 of unemployment benefits that Americans have received during 2020 tax-free.
So, now it can be more clear where that payment on your bank account comes from and why not all 2020 unemployed are receiving the funds.
- Americans who have received unemployment benefits during 2020 and that have paid taxes on those checks are now receiving a refund for the taxes they have paid.
- The 310 tax-relief is covering for only the first $10,200 of unemployment benefits received during 2020: that’s why not every American is receiving the fund; if your funds weren’t coming from this first $10,200, your unemployment benefit is not considered tax-free: you are not receiving a refund for the taxes you have paid.
310 tax relief: how to receive your refund
So, what do you need to do to receive your tax refund?
Nothing. As we’ve mentioned, many Americans have received a payment on the account without even knowing that money was coming.
The IRS is automatically refunding those who have paid un-due taxes in 2020.
Are you eligible for the tax relief and still have not received the refund?
The process is still ongoing: you can still receive your refund, and if you’re eligible, you certainly will. American tax authorities have confirmed that almost 3 million refunds have already been distributed and that the next refunds set are due next month.
It means that if you are eligible for the refund, your money will arrive even though you may need to be patient.
Refunds are managed in chunks; if your money hasn’t arrived with the latest, you need to wait for the next.
Read: Optima Tax Relief Review
The effects of the IRS 310 tax relief
The IRS 310 tax relief is making unemployment benefits even more effective in helping people overcome the crisis due to the pandemic.
Many people – about 13 million taxpayers – who have already received some funds are receiving more funds in their bank accounts.
Shefali Jain is a Content Editor & Writer at National Planning Cycles.
After completing her graduation in hospitality, Shefali decided to follow her passion and started writing. Shefali has been writing for two years now and contributes to our website as a skilled editor and content writer with strong research skills. Writing product and service reviews, biographies, and book reviews are some of her key areas, among many others in which she specializes.