Taxpayers who overpaid taxes on unemployment benefits may still be waiting for their refund, but the Internal Revenue Service said in November that more checks should be coming by the end of the year.
The American Rescue Plan Act, signed into law in March, waived federal tax on up to $10,200 of unemployment benefits a person collected in 2020. However, many had filed their taxes before the legislation was signed, leaving millions with money due.
More than 16 million people were identified by the IRS as being eligible for that refund. By Nov. 1, more than 11.7 million refunds had been sent out.
The IRS said in November that another tranche of payments would be sent out by the end of the year. However, the agency has not announced a day when it expects the checks to be sent out.
More than 430,000 of the unemployment overpayment refunds were sent out around Nov. 1. The average refund was about $1,189, according to the agency.
“The review of returns and processing corrections is nearly complete as the IRS already reviewed the simplest returns and is now concentrating on more complex returns,” according to an agency statement in November.
Those whose returns are adjusted will generally receive letters from the IRS within 30 days of the adjustment. The letters say what kind of adjustment was made and the amount of the adjustment.
Most taxpayers do not have to file an amended return to get their overpayment refund. The payment will be sent out via direct deposit or a paper check will be sent in the mail to the address the IRS has on file.