More than a million Americans to get ‘surprise’ payment from the IRS – here’s how to find out if you’ll get money

MORE than 1 million Americans are set to get a "surprise" payment from the IRS - here's how to find out if you're eligible.

Some 1.5million taxpayers can expect to receive $1,686 as part of adjustments made to previously filed tax returns.

This time, the amount handed out will be higher than previous payments because of changes to the advanced premium tax credit.

The refunds began on Wednesday and on Friday, tax authorities will begin rolling out checks.

The fourth round of refunds is linked to the Government's federal Covid-19 relief plan, relating to the unemployment compensation exclusion provision.

"To ease the burden on taxpayers, the IRS has been reviewing the Forms 1040 and 1040SR that were filed prior to the law’s enactment to identify those people who are due an adjustment," the agency said in a statement earlier this month.

"For taxpayers who overpaid, the IRS will either refund the overpayment, apply it to other outstanding taxes or other federal or state debts owed."

Since May, more than 8.7 million refunds totalling more than $10billion have been issued, according to the IRS.

More than 10 million refunds were submitted for 2020, before the American Rescue Plan Act was signed into law in March.

Under the legislation, the first $10,200 of unemployed compensation received in 2020 is excluded from taxable income.

Any single or married taxpayers with a mixed adjusted income of over $150,000 are not eligible for the rebate.

In some cases, taxpayers will need to file an amended return if they recently became eligible.

Those who will receive cash can expect to get a letter from the IRS within 30 days prior to payment.

Earlier reimbursements were made on July 14 and 16.