tax refund

(CNN/Meredith) -- The IRS will be sending out millions of refunds for taxes paid on unemployment benefits.

The agency is distributing upwards of 2.8 million refunds just this week. 

The refunds are going to people who have already paid taxes on 2020 unemployment compensation.

The refunds will be distributed because there is new legislation on the books that excludes those benefits as income.

The American Rescue Plan Act of 2021 excludes up to $10,200 dollars in unemployment compensation per taxpayer paid last year. 

This means taxes paid on the benefits now count as overpayments.

The IRS refunds mean most affected taxpayers won't have to file an amended return.

The agency says some 13 million taxpayers may qualify for the adjustment.

For more information on the refunds, click here. 

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