IRS issues another round of refunds to 1.5 million taxpayers who overpaid taxes on unemployment
(Gray News) - Another 1.5 million taxpayers will receive refunds as the Internal Revenue Service continues to adjust unemployment compensation from previously filed income tax returns.
According to the IRS, the American Rescue Plan Act of 2021 excluded up to $10,200 in 2020 unemployment compensation from taxable income calculations.
The plan became law in March after much of that money was already paid to the IRS.
If you overpaid, the IRS will either issue a refund or apply the money to other outstanding taxes or federal or state debts owed.
Direct deposit refunds will begin July 28 while paper checks will begin July 31. This fourth round of refunds average more than $1,600, according to the IRS.
Most taxpayers will not need to take any action and there is no need to call the IRS.
The IRS has issued over 8.7 million unemployment compensation refunds since May and will continue reviewing and adjusting tax returns in this category throughout the summer.
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