$1 Billion in Federal Tax Refunds Unclaimed

If you failed to submit a tax return during the height of the Covid-19 pandemic and think you might qualify for a refund, the Internal Revenue Service (IRS) thinks you should reach out.

The agency recently announced that it holds over $1 billion in unclaimed refunds from the 2020 tax year, which eligible taxpayers can still claim.

During the pandemic, the deadline for filing returns to claim refunds for the 2020 tax year was extended to May 17, 2024, beyond the standard three-year period.

IRS Commissioner Danny Werfel emphasized the urgency for those who haven’t filed their 2020 returns to do so before the upcoming deadline. With an estimated median refund of $932 for 2020, many may not realize they are entitled to a refund. The pandemic created unique circumstances that led to some individuals, including students and part-time workers, potentially overlooking their refunds.

Additionally, individuals, particularly those with lower to moderate incomes, might qualify for the Earned Income Tax Credit (EITC), potentially worth up to $6,660 for the 2020 tax year for those with eligible children.

The IRS also pointed out that refunds for 2020 might be withheld if tax returns for 2021 and 2022 have not been filed. Taxpayers are encouraged to review their records and prepare their filings to avoid missing out on any potential refunds.

If you think you might be one of those people, it might be worth looking into further.

Leave a Reply

Your email address will not be published. Required fields are marked *