Refunds for Unemployment Compensation Overpayments
IRS issued another round of refunds this week to nearly four million taxpayers who overpaid their taxes on unemployment compensation received last year.
Refunds by direct deposit began on Wednesday, and refunds by paper check began today. The average refund was $1,265. IRS previously issued refunds related to the unemployment compensation exclusion in May and June, and it will continue to issue refunds throughout the summer.
Taxpayers will receive letters from IRS within approximately 30 days of the adjustment, informing them of what kind of adjustment was made (such as refund, payment of IRS debt payment or payment offset for other authorized debts) and the amount of the adjustment. Read more here