Watch Your Mailbox - IRS Sending Out More Checks

The Internal Revenue Service recently sent out additional tax refunds to individuals who overpaid for their 2020 unemployment benefits.

Yahoo reports a total of 430,000 refunds were sent out this week, averaging about $1,189, as part of the latest round of refunds related to the additional tax exemption for the first $10,200 of unemployment benefits.

In total, the refunds equaled more than $510 million paid back to U.S. taxpayers.

"The review of returns and processing corrections is nearly complete as the IRS already reviewed the simplest returns and is now concentrating on more complex returns," the agency said in a statement on Monday via Yahoo. "The IRS plans to issue another batch of corrections before the end of the year."

The first $10,200 in unemployment benefits aren't taxed for eligible taxpayers in adherence with the $1.9 trillion American Rescue Plan and, because the legislation was signed into law halfway through the 2020 tax season, some filers have already received federal returns prior to being able to the new benefit being offered.

The IRS identified 16 million taxpayers who were potentially eligbile for an additional tax refund and found approximately 430,000 of the 519,000 returns reviewed were eligible.

On Monday (November 1), Yahoo reported that the IRS sent out a total of 11.7 million refunds related to unemployment benefits, which equaled more than $14.4 billion.