Unemployment Tax Refunds: More Checks Heading Out This Weekend?

Unemployment Tax Refunds: More Checks Heading Out This Weekend?

Earlier this month, the IRS began rolling out nearly three million refunds to eligible individuals—but there have been few updates since.

The latest data from the Internal Revenue Service indicate that most eligible Americans already have received their coronavirus stimulus checks that were sent off under President Joe Biden’s American Rescue Plan.

But it is also a known fact that there are millions of Americans who are still struggling to pay for their basic everyday needs—which is why so many are keeping a close eye on when the IRS will issue its next batch of refunds from 2020 unemployment benefits

Earlier this month, the tax agency began rolling out nearly three million refunds to eligible individuals—but there have been few updates since. The release did, though, confirm that the second batch is expected sometime in mid-June, so that could mean today or as soon as this weekend. In typical IRS fashion, the timeline is lacking specifics.

“The IRS plans to issue the next set of refunds in mid-June,” the agency writes. “The review of returns and processing corrections will continue during the summer as the IRS continues to review the simplest returns and then turns to more complex returns.”

For those who are still left on the sidelines, the IRS asserts the best course of action is to wait patiently. The agency has already confirmed that it will automatically adjust tax returns if individuals qualify for the unemployment refund, so it appears there is nothing that eligible taxpayers must do.

“Because the (approval of the refund) occurred after some people filed their taxes, the IRS will take steps in the spring and summer to make the appropriate change to their return, which may result in a refund,” the agency writes.

In its latest update, the IRS noted that “taxpayers will receive letters from the IRS, generally within thirty 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.”

As for how many Americans could be eligible for the refunds, the agency has estimated that approximately ten million individuals likely overpaid on their unemployment taxes in 2020. But do take note that since many taxpayers had already filed their returns before the law change, the figure could potentially surpass thirteen million.

Be aware that there are other government-issued payments that Americans can look forward to. One is the so-called “plus-up” or supplemental checks, which are for taxpayers “who earlier in March received payments based on their 2019 tax returns but are eligible for a new or larger payment based on their recently processed 2020 tax returns.”

More than eight million of these checks already have been disbursed, according to the IRS.

Another payment will target eligible parents via the expanded child tax credit, and the first batches are expected to land in bank accounts on July 15.

Ethen Kim Lieser is a Minneapolis-based Science and Tech Editor who has held posts at Google, The Korea Herald, Lincoln Journal Star, AsianWeek, and Arirang TV. Follow or contact him on LinkedIn.

Image: Reuters.