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IRS unemployment tax refund update: Finally, the checks start showing up!

Some taxpayers waiting for a refund related to unemployment compensation said the payment has finally hit their bank account.

IRS unemployment tax refund update: Finally, the checks start showing up!
[Photo: Zach Gibson/Getty Images]
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Eligible recipients of an elusive tax refund related to unemployment compensation lit up with joy over the holiday weekend with reports that some have finally started to see the checks roll in.

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Some social media users on Twitter and in Facebook groups who have been monitoring the payments said they received notice from their bank, credit union, or online tax transcript beginning on Friday. Although the Internal Revenue Service (IRS) had said the payment would begin to be delivered in May, it has not said how many, nor has it provided much information about which taxpayers would receive them. Many who believe they are eligible for a refund have been communicating in online groups for weeks, attempting to confirm whether the payments had begun.

A spokesperson for the IRS told Fast Company it expects to have more information about its progress this week, including details about how many payments have been delivered so far.

In an update on May 14, the agency said it began automatically correcting tax returns to reflect changes to the law authorized in March by the American Rescue Plan Act. Those changes excluded up to $10,200 of unemployment compensation for 2020, which means some taxpayers who filed early have now overpaid.

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The first phase of refunds were expected to go to single filers with the “simplest tax returns,” the IRS said. Based on some of the responses from elated social media users over the weekend, that appears to be the case.

About the author

Christopher Zara is a senior staff news editor for Fast Company and obsessed with media, technology, business, culture, and theater. Before coming to FastCo News, he was a deputy editor at International Business Times, a theater critic for Newsweek, and managing editor of Show Business magazine

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