The IRS will be sending out millions of refunds for taxes paid on unemployment benefits.
The agency says it is distributing an upward of $2.8 million refunds just this week with the money going to people who have already paid taxes on 2020 unemployment compensation.
The reason is that there's new legislation on the books that does not include those benefits as income.
The American Rescue Plan Act of 2021 excludes up to $10,200 in unemployment compensation per taxpayer-paid last year.
Therefore, taxes paid on the benefits count as overpayments.
Read more on irs.gov.
