Uncle Sam has been kind to us in 2020 and early 2021 as we got to receive money out of nowhere, but the rest of the year hasn’t seemed to be like that.
Cause the economy opened up, and jobs started to take their place, there wasn’t a need for the government to send money to everyone. The unemployment claims still continue, and if you’re left out of your job or the business operations have come to a stop, you can always opt for unemployment compensation. There isn’t really a need for a stimulus check anymore.
While it’s pretty obvious that we won’t be receiving another stimulus check, it got many wondering about the IRS deposits made unexpectedly. The IRS deposits made on August 18 weren’t a stimulus check but were the refunds that taxpayers should’ve gotten at the time of receiving their original tax refunds.
The American Rescue Plan introduced a change in the tax law that excluded unemployment compensation received wouldn’t account for gross income. But this change was announced after the tax season started already. Due to the timing of the tax change, not every taxpayer got to claim their tax refunds adjusted for the changes.
The IRS deposited the total refunds they should’ve received with the unemployment compensation exclusion claimed on their federal income tax returns. A lot of taxpayers thought this was their fourth stimulus check but it wasn’t the right outcome. It was the refund due to this tax change for taxpayers that didn’t amend their returns. If you’re looking for a fourth stimulus check, know that it isn’t coming as the lawmakers aren’t working on such a deal for the public.