There are three possible reasons. They would be entitled to an extra refund if the new deduction of taxes on the jobless aid lowers their income below the EITC cutoff. The watermark reads U.S. 161, Returning an Erroneous Refund Paper Check or Direct Deposit. IRS also encourages taxpayers and their tax preparers to ensure account and routing numbers are accurately entered on returns so your funds can be deposited as intended and remember that your refund should only be deposited directly into accounts that are in your own name, your spouses name or both if its a joint account. When calling the IRS do not choose the first choice re: "Refund", or it will send you to an automated phone line. Mail the voided Treasury check immediately to the appropriate IRS location for your state. Don't staple, bend, or paper clip the check. New comments cannot be posted and votes cannot be cast. The IRS says its identified 13 million taxpayers who may be eligible for the adjustment, according to a news release. When Congress passed the American Rescue Plan Act in March, pandemic relief measures included making up to $10,200 of jobless benefits tax-free retroactively for 2020. Some people will get more, some less. TAS Tax Tip: Got a Direct Deposit from the IRS, But Not Sure What it is For? This could happen because the bank information was invalid or the bank account has been closed. With tax season here, make sure you look out for tax scams. If you receive a refund that seems too large, you may want to wait to cash the check or use the money until you receive a notice explaining it. . Why Did I Get a Deposit From TPG Products? Reason, Explained Archived post. However, the IRS says single filers with no children who were in a similar situation will have their numbers automatically adjusted and, if theyre eligible, a refund issued. Your savings federally insured to at least $250,000 and backed by the full faith and credit of the United States Government. IRS deposit today: What to know about unemployment refunds - Fast Company The Internal Revenue Service said Friday that it had begun sending out the first 2.8 million refunds of taxes paid on unemployment compensation last year. Using the stolen bank account information, the cybercriminals instruct the IRS to deposit the refund into the victims own accounts. Then wait to see if you will be reimbursed. First, don't deposit or cash the check. Why are you mailing it to me as a paper check? Cashing an erroneous refund check may result in interest due the IRS. But the family of the artist who died creating it would prefer you dont call it that. Include a note stating "Return of erroneous refund check" and give a brief explanation of the reason for returning the refund check. If you've been hoping Congress will approve another stimulus check, one of these refunds might be the next best thing, for now. TAS Tax Tip: Got a Direct Deposit from the IRS, But Not Sure What it is