Refunds Are Smaller Than Last Year

Members' refunds may be smaller this year for several reasons. The unemployment exemption of $10,200 only took effect in early March, and many members had filed their returns by then. Others did not use the “lookback rule” that allows people to choose between 2019 or 2020 income when calculating their Earned Income Tax Credit. With lower incomes in 2020, many families may have missed some critical sources of support.

Families will start receiving Child Tax Credits periodically starting in July and the IRS should start working right now to support the families that need it the most. These funds are critical for low- and middle-income households across the country and the IRS needs to ensure that no one is left behind.