KY taxpayers could miss out $11M in expiring refunds this year. How to claim yours now

April 15 is Tax Day — meaning individual tax returns are now due to the federal government. If you’re not going to make that deadline, you should request an extension to file by the end of the day, then estimate and pay any owed taxes, according to IRS guidance.

That said, there’s still one other date to be aware of this spring. Taxpayers face a May 17 deadline to claim any leftover refunds from tax year 2020. The IRS announced in March that nearly 1 million people across the U.S. still haven’t claimed their refunds for the 2020 tax year. Time is running out to do so.

Typically, taxpayers have three years to file and claim their tax refunds, but 2020 return filers have a little more time due to the start of the coronavirus pandemic four years ago.

There’s still time to claim your 2020 tax refund, but you need to act now. Here’s what to know.

Will I get a 2020 tax refund?

Whether you get a 2020 tax refund depends on whether you’ve already filed returns for the 2021 and 2022 tax years. If you haven’t, you should get those in as soon as possible.

The IRS notes on its website, “we hold income tax refunds in cases where our records show that one or more income tax returns are past due. We hold them until we get the past due return or receive an acceptable reason for not filing a past due return.”

In addition, the agency recently advised “the IRS reminds taxpayers seeking a 2020 tax refund that their funds may be held if they have not filed tax returns for 2021 and 2022. In addition, any refund amount for 2020 will be applied to amounts still owed to the IRS or a state tax agency and may be used to offset unpaid child support or other past due federal debts, such as student loans.”

If you are caught up and just need to file that 2020 tax return, there’s a chance you could get a good chunk of money back for your refund. The average median refund for tax year 2020 is $932, according to the IRS.

For Kentucky filers, the agency estimates more than $11 million is still on the table.

The median potential refund in Kentucky is $920, and the agency estimates there are 10,600 individuals in the commonwealth who may be eligible for a refund.

What do I need to file a past-due return?

The first step is to gather your documents and essential information for filing your taxes.

Here’s a quick rundown of the documents and information you’ll need to file your 2020 tax return in 2024:

• Personal information, including your full name, Social Security number and date of birth, along with the same information for your spouse and dependents, if applicable.

• Income documents, including W-2s from all the employers you worked for in 2020. This also includes your 1099 forms for additional income, such as freelance or self-employment income, investment dividends and retirement contributions.

• Documents for deductions and credits you’re eligible for. Mortgage interest, property taxes, medical bills and student loan interest may be deductible depending on your situation.

• Healthcare coverage: A 1095 form documents where you got your health insurance from, along with whom it covered and for how long.

• Previous tax returns: Your 2019 tax return can be a handy reference. Additionally, gather any correspondence you have from the IRS regarding your 2020 taxes.

How do I get my old W-2s if I can’t find them?

Your first step should be to request an old W-2 from a previous employer by contacting its payroll or human resources department.

If you’re having trouble getting your old W-2s, get in touch with the IRS.

You can get a wage and income transcript documenting the federal tax information your employer reported to the Social Security Administration. You can also use form 4506-T. Check the box for W-2s and specify which years you need. Mail or fax the completed form, and it should be processed within 10 business days after the IRS receives it.

If all else fails, you can use form 4852 to act as a substitute for a W-2 by estimating your income and tax burden, though it’s not ideal.

What to know about the Earned Income Tax Credit

Failing to file your 2020 tax return by May 17 also means missing out on the Earned Income Tax Credit, which for 2020 was worth as much as $6,600 for taxpayers with qualifying children, according to the IRS.

Many low- and middle-income workers could be eligible to receive payments through the EITC. According to the IRS, the income thresholds for 2020 are as follows:

• $50,594 ($56,844 if married filing jointly) for those with three or more qualifying children;

• $47,440 ($53,330 if married filing jointly) for people with two qualifying children;

• $41,756 ($47,646 if married filing jointly) for those with one qualifying child, and;

• $15,820 ($21,710 if married filing jointly) for people without qualifying children.

How can I track the status of my refund? How can I speed it?

After you’ve filed your return, you can use the IRS Where’s My Refund tool to track its status.

Your refund status will appear three to four days after electronically filing a return for a previous year.

Direct deposit is the best and fastest way to get your tax refund. To take advantage of it, you’ll need to provide the number for your bank account and the bank’s routing number.

Where can I get help filing my refund if I need it?

IRS Free File can be a good option if your adjusted gross income in 2023 was $79,000 or less. The IRS program allows you to choose a free file offer from a tax preparation services provider, such as TaxAct.

According to the IRS, as long as you meet the criteria for the offer you select, you cannot be charged for the electronic preparation and filing of a federal tax return. That said, some providers do charge a fee for preparing state returns.

To get matched with a provider that suits your needs, the IRS offers a tool for that, as well.

Do you have a question about life in Kentucky for our service journalism team? Send us an email at ask@herald-leader.com or contact us by using the Know Your Kentucky form below.