The Internal Revenue Service (IRS) is sitting on a gigantic bag of unclaimed money, with almost a billion dollars in federal taxes. Texas is one of the states with the most money to claim, with almost $107 million in unclaimed federal income taxes corresponding to fiscal year 2020.
At the height of the coronavirus pandemic, filing an income tax return could be done. Due to the coronavirus pandemic, the IRS delayed the filing date of 2020 returns and subsequent tax refund claims, but the deadline is May 17, 2024 for 93,400 Texans who have to claim about $107 million in refunds.
If we divide the amount to be distributed in Texas by the number of potential taxpayers who will receive the refunds, the average is about $1,145 per person, a not inconsiderable amount of money that you will lose forever if you do not claim before May 17.
After that date, the money becomes the property of the United States Treasury. Generally, taxpayers have 3 years to file an earlier return and claim a refund. During the 2020 filing seasons, the season was delayed until May 17, 2021, which means that the 3-year window for 2020 returns closes on May 17, 2024.
How Do I Know if I Have a Refund Pending at the IRS?
To find out if you have money from a pending refund, you must file a federal income tax return for the year 2020. Once you do this and have filed it correctly, you will be able to get data such as credits, deductions, and things that will be returned to you. But you must submit and sign the statement.
Due to the impact of the pandemic, some people worked part-time or did not work at all, and many of them did not earn enough income to file a return. According to the IRS, you can get your money back if you qualify for a refundable tax credit or if your employer withheld the federal income refund from your paycheck, or if you made estimated tax payments.
Tax preparation software can assist you in preparing your 2020 tax return online. However, while you can electronically prepare an old return using these programs, you cannot electronically file the return. Instead, you must print and mail the return to the IRS before May 17.
You can gather your tax documents and input the necessary information into the return. Once all the questions are filled in, the software will calculate your refund amount. The easiest approach is to log into a free tax software, enter your data, and see if you’re owed a refund. If so, proceed with filing.
How to Get Your Tax Refund?
Ensure you have all your 2020 tax year documents ready. If you’re missing an old W-2 form, reach out to your employer for a duplicate. If that’s not feasible, you can request an IRS wage and income transcript online. After confirming your identity, you can immediately access the transcript online and use the income details to complete your return.
The IRS doesn’t penalize late claims for refunds on tax returns. However, if you haven’t filed returns for 2021 and 2022, your 2020 tax refund may be held. Refunds might also be used to offset unpaid taxes from other years, child support, or other federal debts, such as student loans. Try handling it on your own, but don’t hesitate to seek professional assistance if needed. Sometimes, the service is well worth it.
