Tax refund: IRS to send out overpayment unemployment money to nearly 4M this week

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(WJW) — The Internal Revenue Service continues its campaign to send refunds to Americans who overpaid on unemployment compensation in 2020, reportedly planning to send nearly 4 million taxpayers money this week.

With the passing of the American Rescue Plan earlier this year, up to $10,200 in unemployment compensation was waived from taxation. Anyone who may have paid their taxes prior to the plan’s passing may be owed money now.

“So far, the IRS has identified 13 million taxpayers that may be eligible for the adjustment,” the IRS said in a previous statement. “Some will receive refunds, which will be issued periodically, and some will have the overpayment applied to taxes due or other debts. For some there will be no change.”

This week’s refunds are hitting bank accounts on July 14 via direct deposit, otherwise paper checks should start arriving by July 16. The IRS said this round of payments average $1,265, with most qualified people not needing to do anything to receive the payment.

Some payments were already sent out in May and June and more payments are planned through the rest of summer.

Those whose taxes have been adjusted (whether the IRS has deemed they need a refund or not) should receive a notice from the IRS in the next 30 days. Find out more about overpayment qualifications right here.

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