The IRS recently sent out the refunds averaging $1,189 to 430,000 taxpayers that paid taxes they should not have on their unemployment.
As many wait for a fourth stimulus check that’s starting to look unlikely, people were happy to receive this payment.
California is also in the middle of sending out their second round of statewide stimulus checks to qualifying residents.
Why is the IRS sending money, will I get any, and when?
The IRS sent 430,000 payments for people that filed their taxes before the American Rescue Act passed and paid taxes on the first $10,200 of their unemployment.
The act passed made is so $10,200 were untaxed. Those that paid the taxes before that are being refunded that money.
Married couples are eligible for the break if they made under $150,000 in 2020.
The refunds are an attempt at correcting the overpayments before people will have to file an amended tax return.
On Nov. 1 the IRS shared that they were almost finished, having completed the simpler returns and are now focused on the more complicated ones.
There will be another round of payments sent before the end of the year, according to the IRS.
You will only get money if you collected unemployment and paid taxes on it before the law was passed.
16 million taxpayers have been identified by the IRS as possibly needing to be refunded, and some will get refunds while others will have it go toward taxes due or debts.
The IRS will send you a letter within 30 days of their adjustment to your taxes letting you know what they did and how much it was for.
In Nov. and Dec. the IRS will also send letters to people that didn’t claim the earned income credit or child tax credits that now can.
Related: These residents can prepare to receive their fourth stimulus checks, are you one of them? Here’s how to get it and when to expect it
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