The Internal Revenue Service is warning almost 1 million Americans that time is running out to claim tax refunds from 2020.
The IRS is urging anyone who has not filed a tax return for 2020 to take action in order to get their share of $1 billion in tax refunds owed from the Earned Income Tax Credit and the coronavirus-era Recovery Rebate Credit. The deadline to claim is May 17.
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Taxpayers with low or moderate incomes may qualify for the 2020 Earned Income Tax Credit, which can provide up to $6,660 for taxpayers with eligible dependents. The Recovery Rebate Credit is available for those who did not receive one or more Economic Impact Payments in 2020 or 2021. These payments, commonly referred to as stimulus checks, were distributed to those who filed tax returns in those years. The average owed across all 50 states is $932, the government agency said.
The deadline to claim is already an extension of the usual filing deadline, which was April 15 for the 2023 tax year. Any money not claimed before May 17 becomes property of the U.S. Treasury and can no longer be recovered. The IRS said in a statement on May 6: "After the expiration of the three-year period, the refund statute generally prevents the issuance of a refund check and the application of any credits, including overpayments of estimated taxes or withholding amounts, to other tax years that are underpaid."
IRS Commissioner Daniel Werfel has said many may have overlooked or forgotten about the payments, or may not even realize they are owed a tax refund, especially students and part-time workers. "People faced extremely unusual situations during the pandemic, which may have led some people to forget about a potential refund on their 2020 tax returns," he said in a statement.
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"There's money remaining on the table for hundreds of thousands of people who haven't filed 2020 tax returns," Werfel said. "We want taxpayers to claim these refunds, but time is running out for people who may have overlooked or forgotten about these refunds. There's a May 17 deadline to file these returns, so taxpayers should start soon to make sure they don't miss out."
What Should I Do If I'm Owed a Refund?
In a final reminder issued on May 6, the IRS said those who believed they might be owed a tax refund should gather all the required documents. The agency offers options for taxpayers to obtain missing forms.
- Request copies of key documents. Taxpayers who are missing Forms W-2, 1098, 1099 or 5498 for the relevant year can request copies from their employer, bank or other payers.
- Request a transcript using an online tool. Taxpayers who have lost contact with their employer or other payers can order a free wage and income transcript at IRS.gov using the Get Transcript Online tool.
- Request a transcript using a form. File Form 4506-T, Request for Transcript of Tax Return with the IRS to request a wage and income transcript.
There is also no penalty for filing late if a tax refund is due, the IRS said in its reminder.
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Aliss Higham is a Newsweek reporter based in Glasgow, Scotland. Her focus is reporting on issues across the U.S., including ... Read more
