The Internal Revenue Service has been issuing unemployment refunds for those who overpaid while filing 2020 tax returns. It was common, as tax laws were changing by the day – amid multiple aid packages coming out of the federal government during the coronavirus pandemic.
The last round of refunds for overpayments went out in late July. The IRS is working through a massive backlog of unprocessed tax returns; and additional refund checks are going to be necessary.
The average refund has been approximately $1,686, but it could be more or less based on what the individual paid in the spring. This is because the first $10,200 of 2020 unemployment benefits was nontaxable with the American Rescue Plan.
At issue is the timing of its passage, which came months after Americans began filing tax returns for 2020.
Look for the IRS TREAS 310 transaction.
The IRS has issued 8.7 million unemployment refunds worth more than $10 billion since the American Rescue Plan was signed into law in May.
There’s been some indication that additional rounds of payments will be going out in September and October. This comes as tax filers check out the IRS tool that allows tracking – available by clicking here.