Almost 1 million Americans are owed a $1 billion in IRS tax refunds – but there are just two weeks left for you to claim
About 900,000 Americans are missing out on valuable funds because they have yet to claim their 2020 tax refund.
Taxpayers have until May 17 to file to recover more than $1 billion in unclaimed refunds, the Internal Revenue Service announced.
Normally, there is a three-year period to claim repayments before the money becomes the property of the U.S. Treasury Department.
In previous years, the normal filing deadline for claiming old refunds fell around the same time as the federal tax deadline, which this year was April 15 for 2023 returns. But due to the Covid-19 pandemic, an extension was granted for 2020 refunds .
The average average refund for 2020 is $932, according to the IRS, but this varies by state, with some typical payouts as high as $1,031.
The IRS provided details on the states that owed the most tax refunds as of 2020. All states owed, but Texas residents owe the most: more than $107 million
IRS Commissioner Danny Werfel said on March 25 that nearly 940,000 US taxpayers received unclaimed funds from the 2020 tax year – that number is now down slightly
According to the IRS, Texans owe the highest amount in total refunds, with an estimated 93,400 residents owed $107,130,200 in rebates.
The state-by-state breakdown calculated by the agency shows that California has the second-highest amount of potential refunds, with $94,226,300 owed to 88,200 people.
New York comes in third, with $60,837,400 owed to 51,400 residents.
The IRS predicts that 53,200 Florida residents could still owe more than $58 million, while 38,600 people living in Pennsylvania could be sitting on $43,412,900 in unclaimed cash.
Pennsylvania residents also get the highest average payout at $1,031, followed closely by New Yorkers at $1,029.
“There is still money on the table for hundreds of thousands of people who have not filed a 2020 tax return,” Werfel said in a statement.
“We want taxpayers to claim these refunds, but time is running out for people who may have overlooked or forgotten these refunds.”
“There is still money on the table for hundreds of thousands of people who have not filed a 2020 tax return,” said IRS Commissioner Danny Werfel.
“We want taxpayers to claim these refunds, but time is running out for people who may have overlooked or forgotten these refunds. There is a May 17 deadline to file these returns, so taxpayers should get started soon to ensure they don’t miss out.”
Werfel added that the “extremely unusual situations” many faced during the pandemic could have caused them to forget about a possible refund on their 2020 tax returns.
‘People may have simply overlooked these, including students, part-time workers and others. Some people may not realize they are entitled to a refund,” he said.
Anyone hoping to receive these funds for 2020 this year must meet certain requirements.
The IRS confirmed in a March 4 announcement that most taxpayers who were U.S. citizens or residents in the relevant year are eligible.
However, anyone who meets this qualification must also not be dependent on another taxpayer and have a Social Security Number issued before the tax return due date.
The funds for 2020 can also be requested for someone who died that year or later.
Taxpayers typically have three years to file and claim their tax refund, meaning this is the last year in which they can collect their potential 2020 funds.
If they don’t, the money goes to the U.S. Treasury Department.
Because it is not yet too late to file a 2020 tax return, it is important that individuals can do this efficiently and correctly.
The 2020 funds the IRS is referring to are from the Covid-era Recovery Rebate Credit
The IRS reminded taxpayers in their recent statement that there are ways to receive their forms before the May deadline.
Taxpayers eligible for 2020 refunds are advised to start filing those returns early.
To do this, tax filers should request copies of 2020 documents as soon as possible.
“Taxpayers who are missing Forms W-2, 1098, 1099 or 5498 for the years 2020, 2021 or 2022 may request copies from their employer, bank or other payers,” the IRS said on its website.
For those who cannot obtain these forms from their employer or other payers, they can simply order a free wage and income transcript through the IRS Get Transcript Online tool.
The agency noted that taxpayers who wish to file a Form 45-6-T with the IRS must request a wage and income statement.
That transcript will show records of information received by the IRS, such as W-2s and 1099s.
Although requesting these copies may take several weeks, they provide the information needed to file a tax return.