Getting an unanticipated sum of money can surely brighten your day.

Recently, I checked my bank account as part of my usual routine to review my finances and perhaps worry about my credit card balance. To my surprise, as I examined my checking account, I noticed a new deposit from the IRS! This left me puzzled as I don’t have children, ruling out the child tax credit. Additionally, no recent announcements had been made regarding new stimulus checks. This left me wondering where this unexpected money had come from. It turns out, I had missed a recent news headline, and it appears many others did too.

Earlier this week, the IRS revealed its plan to distribute a fresh round of refunds to the American public under the American Rescue Plan approved in March. Part of the provisions within the American Rescue Plan included a substantial amount of funding allocated for the adjustment of unemployment taxes. Many individuals had already filed their taxes in February, before the enactment of the American Rescue Plan. Consequently, their refund amounts were recalculated. So, if you received a direct deposit from the IRS recently, it likely corresponds to a refund to rectify the changes in unemployment taxes due to the American Rescue Plan.

Based on IRS data, around 4 million Americans are eligible for this refund. The specific amount of the refund you receive will vary depending on the unemployment benefits you received last year and your income level. These refunds are designated for individuals or couples with an annual gross income of less than $150,000. If your direct deposit information is not on file with the IRS, anticipate receiving a paper check by mail within the next month.