The majority of eligible dependents and adults received $1,400 stimulus checks under the American Rescue Plan Act. It did, however, do a lot better than what was expected. In fact, the American Rescue Plan Act still has some provisions that benefit taxpayers.
The IRS announced on Friday, January 6, 2023, that approximately 12 million Americans would receive tax refunds. These stimulus check/tax refund payments will be made to people who qualify for additional money back under the American Rescue Plan Act. The approximate $14.8Bn in refunds will be distributed, with each eligible person receiving an average of $1,232.
IRS’s Stimulus Check Distribution
The IRS has decided to distribute this money for the reasons listed below, along with information on the people that may qualify to receive a deposit in a bank account that they hold. One of the most important elements of the COVID-19 relief bill concerned exempting some unemployment benefits from taxation. This provision was included in the American Rescue Plan Act, which President Biden had signed and approved as law in March 2021.
In particular, if a couple filed their taxes as married filing jointly, a maximum of $10,200 as unemployment benefits received in the year 2020 can be shown as non-taxable from each spouse’s taxable income. Those individuals earning less than $150,000 were subject to this exclusion (with the income limit being applicable regardless of whether a person has filed their taxes or not).
Even before the passing of the American Rescue Plan Act, a large number of people had already filed their tax returns. As such, the people had already reported and cleared their taxes on this income. The IRS decided to examine tax returns that were filed before the American Rescue Plan Act was passed to ascertain who was impacted by this legal change.
The IRS reported that it had completed reviewing and correcting as many as 14Mn returns on January 6, 2023. As a result, 12 million people have since received $14.8 billion in total in these tax refund stimulus checks.
