More than 22,000 Vermonters who filed for unemployment last year could get a tax refund, according to the state Department of Taxes.
The department announced Tuesday that it has begun sending checks to people who collected unemployment in 2020 and filed their taxes electronically before April 1 of this year. The refunds are the result of the federal American Rescue Plan Act, which became law in March and exempted up to $10,200 in unemployment compensation for taxpayers filing individually and $20,400 for married couples filing jointly.
The potential refund applies only to taxpayers whose adjusted gross income minus unemployment benefits was less than $150,000.
According to the department, most taxpayers do not have to take action to receive the refund. But those who submitted paper tax returns or who, due to the refund, might become newly eligible for such programs as the Earned Income Tax Credit, may have to amend their returns.
Correction: Due to an editing error, an earlier version of this story mischaracterized the department’s plans. It does not expect to contact most filers who need to amend their returns.
