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IRS tax refunds are delayed this year – frustrating taxpayers who are waiting for $10,200 payments

AMERICANS are waiting for thousands of dollars in tax refunds from the IRS, and some are saying the relief couldn't come soon enough.

Approximately 10million taxpayers may get a if they filed their tax returns before the tax break in the American Rescue Plan became law.

Read our  for the latest updates on Covid-19 relief...

Approximately 10million taxpayers may get a $10,200 payout if they filed their tax returns before the tax break in the American Rescue Plan became law
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Approximately 10million taxpayers may get a $10,200 payout if they filed their tax returns before the tax break in the American Rescue Plan became lawCredit: Getty Images - Getty

The American Rescue Plan Act signed on March 11 included a $10,200 tax exemption for 2020 unemployment benefits.

The exemption meant that checks sent during the pandemic weren't counted as earned income.

In other words, you won't get taxed on the COVID-19 relief you received in 2020.

The IRS said it would start issuing refunds to people with the least complex tax returns, such as those who didn't claim children
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The IRS said it would start issuing refunds to people with the least complex tax returns, such as those who didn't claim childrenCredit: Getty Images - Getty

The IRS started rolling out the first refunds two weeks ago and will continue to do so through the summer, but some people are running out of patience.

As many anxiously wait for the tax refunds to hit their bank accounts, financial advisors told the that few have received their refunds from the IRS.

"I still have not heard of anyone who has received a refund from the unemployment benefits tax change," financial advisor George Papadopoulos said.

The $10,200 exemption applied to individual taxpayers who earned less than $150,000 in modified adjusted gross income.

Married couples filing jointly could exclude up to $20,400 of unemployment benefits from their earnings.

The IRS said it would start issuing refunds to people with the least complex tax returns, such as those who didn't claim children.

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