Skip to content
Home » Valentine's Day » People wake up to direct deposits from the IRS unexpectedly due to overpayment on unemployment taxes for 2020

People wake up to direct deposits from the IRS unexpectedly due to overpayment on unemployment taxes for 2020

Some people woke up to unexpected money sitting in their bank accounts from the IRS this week.

Throughout the summer, the IRS has been distributing money to individuals that overpaid taxes on 2020 unemployment.

The official release date wasn’t announced for the next round of payments, but some people posted their tax transcripts with an updated date of Aug. 18.


Many people receiving the payments were unaware.

After the American Rescue Plan started, 13 million tax returns needed to be adjusted, some resulting in a refund.

People who filed their taxes before the federal law excluded up to $10,200 for 2020 unemployment compensation were likely to have money owed to them.

The IRS sent out around $8.7 million in July and the refund size is on average $1,686.



Categories: BusinessNews