Dollar bills fanned on a tax refund form
Source: Turbo Tax Facebook

What’s an “IRS TREAS 310” Tax Refund, and Why Did You Get One?

Anuradha Garg - Author
By

Mar. 25 2022, Published 8:29 a.m. ET

The tax season is in full swing, and early filers are even getting their refunds. However, how these appear on your bank statement can be confusing. What's an "IRS TREAS 310" tax refund, and why did you get one?

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When you file your income tax return, you estimate the refund (if any) due from the IRS to you. However, in some cases, the amount might be lower or higher than your calculations. About 75 percent of U.S. filers get an annual tax refund from the IRS, and according to the agency, the average 2020 tax refund was $2,800. As of March 22, 2022, the IRS had sent out more than 45 million tax refunds.

What's an "IRS TREAS 310" tax refund?

The "310" code refers to a transaction of a refund from a filed tax return in the form of a direct deposit. "IRS TREAS 310" is a normal automated clearing house (ACH) direct deposit refund from a filed tax return. Along with the 310 code, the IRS payment will include a description that differs depending on the payment type. The codes could be one of the following:

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  • "IRS TREAS 310 TAX REF"
  • "IRS TREAS 310 TAXEIP3"
  • "IRS TREAS 310 CHILDCTC"

A direct deposit with "TAX REF" is basically a refund from a filed return, including amended tax returns or IRS tax adjustments. The other two codes refer to economic impact payments and advance payments of child tax credits, respectively.

tax refund irs
Source: Pexels
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Getting a refund for unemployment benefits tax

The American Rescue Plan Act provided relief on federal tax on up to $10,200 of unemployment benefits a taxpayer collected in 2020. Usually, unemployment benefits are taxable, but the act waived the tax due to the COVID-19 pandemic. As most people eligible for the break filed their tax returns before the act came into effect, the IRS had to issue special tax refunds to eligible taxpayers.

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The payments by the IRS started in May 2020 and have continued since. According to the latest update on Dec. 20, 2021 (with a new section showing the status of unemployment compensation exclusion corrections), the IRS was still reviewing more complex returns and the process was set to continue into 2022.

As a result, you might have received a tax refund if you were eligible and had still not received it. If you believe you've received a payment in error, you can repay the amount or wait for more clarity.

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