The IRS May Owe You $1K in Past Tax Refunds: How to Get Your Money from 2020
The IRS owing YOU money? Well, that’s a refreshing change! According to the Internal Revenue Service (IRS), it holds over $1 billion in unclaimed money for almost 940,000 taxpayers who never claimed their refund in 2020.
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“There’s money remaining on the table for hundreds of thousands of people who haven’t filed 2020 tax returns,” said IRS Commissioner Danny Werfel in a statement. “We want taxpayers to claim these refunds, but time is running out for people who may have overlooked or forgotten about these refunds,”
Normally, taxpayers have three years to claim a refund from the end of tax season. However, due to the COVID-19 pandemic, the deadline to file 2020 taxes was extended to May 17, 2021. So, the three-year window is closing on May 17, 2024. Any unclaimed refund becomes the property of the U.S. Treasury after three years, per the IRS.
How Can I Claim a 2020 Tax Refund?
The pandemic affected Americans in many ways. Doing your taxes isn’t a party, but neglecting them can hurt your finances significantly, especially if you’re eligible to claim credits like the Earned Income Tax Credit (EITC).
“Some people may not realize they may be owed a refund,” added Werfel. “We encourage people to review their files and start gathering records now, so they don’t run the risk of missing the May deadline.”
The average unpaid 2020 refund amount is $932, according to the IRS. The Associated Press reports that Texas (93,400), California (88,200), Florida (53,200) and New York (51,400) have the most people eligible for these refunds.
There’s still time to file, but with the May 17 deadline a little over a month away, taxpayers should start soon to make sure they don’t miss out. And remember, you can’t file prior years’ taxes electronically. The IRS recommends the following three options for collecting the information you’ll need to file.
Request copies of documents from your employer, bank and other payers: You can request copies of Forms W-2, 1098, 1099 or 5498 for the years, 2020, 2021 or 2022 from your employer and bank.
Use the Get Transcript Online Tool at IRS.gov: The quickest and easiest option for any missing employment information is to get any required forms to order a free wage and income transcript at IRS.gov using the Get Transcript Online tool.
Request a wage and income transcript: A wage and income transcript shows data from information returns received by the IRS, such as Forms W-2, 1099, 1098, Form 5498 and IRA contribution information. You can get yours by filing Form 4506-T with the IRS, requesting the transcript. Make sure to give yourself plenty of time if you choose this option, as written requests can take several weeks, per the IRS.
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This article originally appeared on GOBankingRates.com: The IRS May Owe You $1K in Past Tax Refunds: How to Get Your Money from 2020
