The American Rescue Plan that was introduced on March 11, 2021, brought some great changes to the US tax code that went into effect after the tax season started.
With the American Rescue Plan, tens of millions of individuals became eligible for the unemployment compensation exclusion. The rules of the exclusion were simple. If you are making less than the threshold, you won’t pay taxes for up to $10,200 received in unemployment compensation. Learn more about how the unemployment waiver.
While the exclusion is good and beneficial to taxpayers, this went into effect after the tax season started in 2021. What this caused is that confusion among taxpayers as to whether or not they need to amend their federal income tax returns to claim the exclusion. The IRS announcement made shortly after the American Rescue Plan stated that the exclusion would be considered automatically to taxpayers who are eligible for it. All of these bring us to IRS treas 310 tax ref 081821 that you’ve seen in your bank account. The transaction code refers to the tax refund connected to the unemployment compensation. The IRS Treas 310 refers to the money received from the Treasury, and the Ref 081821 refers to the date the money was sent to direct deposited into your bank account.
So, if you received a sum of money out of nowhere and you see the IRS treas 310 tax ref 081821 code attached to the payment, know that this is your tax refund, related to the unemployment compensation exclusion.