The IRS said this month that the refunds totaled $14.8 billion for an average of $1,232 refund.

The move came because of the impact of The American Rescue Plan Act of 2021, which became law in March 2021. That law  excluded up to $10,200 in 2020 unemployment compensation from taxable income calculations (up to $10,200 for each spouse if married filing joint). The threshold for individuals and married couples was modified adjusted gross income of less than $150,000

The IRS decided to review Forms 1040 and 1040-SR that were filed prior to the law's enactment for those who had already reported unemployment compensation as income.

Many of the adjustments included corrections to the following credits: Earned Income Tax, Recovery Rebate, Additional Child Tax, American Opportunity Tax, Premium Tax and  Advance Premium Tax Credit.