IRS issues $510 million in refunds to taxpayers who overpaid on unemployment
(Gray News) - The Internal Revenue Service is issuing more than $510 million in refunds to taxpayers 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.
According to the IRS, the latest batch of refunds affected over 519,000 returns, with 430,000 taxpayers receiving an average of $1,189.
The IRS has issued over 11.7 million refunds so far this year, totaling $14.4 billion.
Impacted taxpayers will generally receive letters from the IRS within 30 days of the adjustment, informing them of what kind of adjustment was made and the amount of the adjustment.
The IRS plans to issue another batch of corrections before the end of the year.
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