IRS $1,200 Refund: Who Will Get the Tax Refund?

The Internal Revenue Service announced that it recently completed some corrections for tax year 2020. The agency corrected approximately 14 million returns, resulting in nearly 12 million refunds totaling of $14.8 billion, with an average refund of $1,232.

IRS $1,200 Refund: Who Will Get the Tax Refund?

The final corrections to the tax year 2020 accounts were for taxpayers who overpaid their taxes on unemployment compensation they received in 2020, as indicated in the American Rescue Plan, approved in March 2021.

The American Bailout Act of 2021 excluded up to $10,200 in 2020 unemployment compensation from taxable income calculations (up to $10,200 for each married spouse filing jointly). The exclusion applied to individuals and married couples whose modified adjusted gross income was less than $150,000.

To provide relief to taxpayers, the IRS took steps to review Forms 1040 and 1040SR that were filed before the law was enacted to identify taxpayers who had already reported unemployment compensation as income and were entitled to the correction. The IRS sent a letter to these taxpayers informing them of the corrections, which they should keep with their tax files.

This may interest you: Who is not required to file taxes in 2023?

According to the IRS, many of the adjustments included corrections to:

How to check the status of your refund?

You can track your payment with the Where’s my refund tool. You can also check the status of your refund through the IRS2Go app.

The taxpayer should call the IRS if:

For assistance in Spanish, call 800-829-1040. For assistance in other languages, please call 833-553-9895. We also recommend you visit the IRS website for more information.