Where Are the Unemployment Tax Refunds From Your State? The IRS has stated that roughly ten million Americans likely overpaid on their unemployment taxes in 2020 and qualify for the refunds that could amount to thousands of dollars. The Internal Revenue Service made quite a splash recently when it announced that more than 2.8 million refunds for 2020 unemployment benefits were sent out to eligible Americans. That story, however, left out any mention of when struggling taxpayers can get their hands on unemployment tax refunds from their respective states. And the entire process seems to be highly complicated for many of the states involved in disbursing the funds to their residents.