Vermonters unemployed in 2020 could get additional tax refund

By Fred Thys/VTDigger

More than 22,000 Vermonters who filed for unemployment last year could get a tax refund, according to the Dept. of Taxes.

The state announced on Sept. 14 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. Most taxpayers do not have to take action to receive the refund. But some may have to amend their returns.