HARLINGEN, Texas (KVEO) —The American Rescue Plan (ARP), gives a tax break to people who lost their jobs last year. If you were unemployed last year, and haven’t filed your taxes, you might want to wait.
ARP was signed into law by President Joe Bident last week and gave a tax break to those who received unemployment benefits.
“The first $10,200, in unemployment benefits is non-taxable,” said Feliz Garcia, owner and tax professional at Happy Tax Returns.
Some may be eligible for a refund up to $1,000.
“If you’re one of those single filers, that had federal withholdings being deducted as you received those benefits, you could actually get a refund,” said Garcia.
If you have not filed taxes yet, you’ll be able to get the credit soon.
“It’s awesome it’s like a nice little surprise it wasn’t that much that was being taken out maybe $100 a month,” said Rebeca Monge a receiver of unemployment benefits.
It might take about a month for tax software to be updated, so you can claim the credit.
If you already filed your taxes, you can still get the credit by amending your tax return, but the IRS says to hold off on sending it now.
“The wait time it takes to receive that amended refund…is going to be anywhere between six to nine [months] maybe, even up to 12 months.”
The IRS is expected to announce guidance on when you can file your amended return.