It already has been known for months that the Internal Revenue Service is struggling to stay on its timeline for promptly issuing to eligible Americans the various payments from tax refunds to coronavirus stimulus checks.

But it has been particularly frustrating for those individuals who are still waiting for their refunds from 2020 unemployment benefits. Early last month, the IRS did release nearly three million refunds and said it would disburse the next batch in mid-June. However, that has not happened.

“The IRS plans to issue the next set of refunds in mid-June,” the agency noted in its release. “The review of returns and processing corrections will continue during the summer as the IRS continues to review the simplest returns and then turns to more complex returns.”

For those individuals who received unemployment benefits last year, they were likely mailed a 1099-G form from their respective state unemployment insurance agency. This particular document should detail how much unemployment was received and how much, if any, was taken out for taxes.

One way to know whether the refund has been issued is to wait for a letter that the IRS is currently sending out to taxpayers.

Eligible Americans “will receive letters from the IRS, generally within thirty days of the adjustment, informing them of what kind of adjustment was made (such as refund, payment of IRS debt payment or payment offset for other authorized debts) and the amount of the adjustment,” the agency says.

The IRS adds: “Because the (approval of the tax refund) occurred after some people filed their taxes, the IRS will take steps in the spring and summer to make the appropriate change to their return, which may result in a refund.”

Another way to see if the refund was issued is to view one’s tax transcript. This can be accomplished online by visiting IRS.gov and logging into an individual account. For those without IRS accounts, they will need to confirm their identities before proceeding.

Know that these potentially sizeable refunds are thanks to President Joe Biden’s $1.9 trillion American Rescue Plan, which was able to waive federal tax on up to $10,200 of unemployment benefits, or $20,400 for married couples filing jointly, that were received by taxpayers last year.

Unemployment benefits are generally treated as taxable income, according to the IRS.

Current refund estimates are indicating that for single taxpayers who qualify for the $10,200 tax break and are in the 22 percent tax bracket, they could be on the receiving end of more than $2,200. That amount could potentially double for eligible married couples.

The IRS has noted that an estimated ten million Americans likely overpaid on their unemployment taxes in 2020.

Ethen Kim Lieser is a Minneapolis-based Science and Tech Editor who has held posts at Google, The Korea Herald, Lincoln Journal Star, AsianWeek, and Arirang TV. Follow or contact him on LinkedIn.

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