IRS sending out refunds to taxpayers who overpaid on unemployment benefits

Some taxpayers who paid too much on their unemployment benefits last year are set to begin receiving money back from the Internal Revenue Service.

The refunds are for people who collected unemployment last year and filed their 2020 returns before mid-March.

The newest round of refunds has already gone out as direct deposits. Paper checks will be sent starting Friday.

The average refund for overpayment is about $1,200.

Meanwhile, the Biden administration is beginning to distribute expanded child tax credit payments, giving parents on average $423 this month, with payments continuing through the end of the year.

President Joe Biden increased the size of the tax credit as part of his $1.9 trillion coronavirus relief package, as well as making it fully available to families without any tax obligations. The benefit is set to expire after a year, but Biden is pushing for it to be extended through 2025 and ultimately made permanent.

The Associated Press contributed to this report.

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