If you’re among the millions of Americans who have been waiting patiently for one of those coveted unemployment-related tax refunds, this could be your week.
The latest batch of the long-delayed payments is now being distributed, the Internal Revenue Service said Tuesday, and they should begin to hit bank accounts as early as today. According to an updated timeline provided by the IRS, checks being sent by direct deposit will have a payment date beginning July 14, while those being sent by mail will go out beginning July 16.
The new batch includes some 4 million payments, with the average refund size being $1,265.
First announced in March, the refunds are being issued to people who overpaid taxes on 2020 unemployment compensation as a result of changes to the law implemented by the American Rescue Plan Act. The act excluded up to $10,200 in taxable unemployment income, meaning many people who filed taxes before it was signed into law have now overpaid.
The IRS has said it would automatically correct most returns that require an adjustment and issue refunds accordingly, beginning with the simplest returns first. But it has repeatedly failed to meet its own estimated timelines, promising that the first round of checks would go out in May and the second round in mid-June, but providing little communication beyond that. Taxpayers who believe they are eligible have been watching their bank accounts intently since then. Some reported on Friday that they received notice about the July 14 payment in their online tax accounts.
In addition to the latest refunds, the IRS says it will notify all taxpayers whose returns are corrected with a hardcopy letter, which should arrive within 30 days. With the current batch, the vast majority of those with corrected returns are due a refund.
Notably, the IRS has not estimated when it will send out the next batch of payments, perhaps having learned from past experience. It did, however, reiterate that these payments will continue throughout the summer, so if you don’t get a refund as part of this current round, don’t lose hope!
You can check out the latest IRS update here.