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IRS to issue refunds to 4 million taxpayers who overpaid taxes on unemployment

The IRS said the refund average is $1,265.
The IRS said the refund average is $1,265.(CNN Newsource)
Published: Jul. 14, 2021 at 2:50 PM CDT
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(Gray News) - About four million taxpayers can expect to see refunds from the Internal Revenue Service this week.

The money will go to people who paid too much on unemployment compensation last year.

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.

This round of refund payments will begin July 14 for direct deposit and July 16 for those who receive paper checks.

The IRS said the refund average is $1,265.

Most taxpayers will not need to take any action and there is no need to call the IRS.

Copyright 2021 Gray Media Group, Inc. All rights reserved. CNN Newsource contributed to this report.