The Internal Revenue Service (IRS) has issued a new alert for taxpayers who have not claimed their tax refunds that were left on the table in 2020: This is more than $1 billion that has not been collected by its owners, and they are about to lose it forever. The federal tax collection agency announced that there are almost 940,000 people, and announced the last date to make the claim.
“There’s money remaining on the table for hundreds of thousands of people who haven’t filed 2020 tax returns,” 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 about these refunds,” he added. The average refund for 2020 is $932.
Claiming Your 2020 Tax Refund: Don’t Lose $932
According to current law, taxpayers have three years to file and claim their tax refunds in the United States. If the return is not filed within the stipulated time, the money becomes the legal property of the Treasury Department, so, Uncle Sam will keep it and use for federal expenses.
However, people have a little more time than usual to submit their refunds for 2020 due to the COVID-19 pandemic. This is an exceptional thing that only applies in this instance, according to the IRS. That’s why you still have time to claim your $932, before May 17, 2024.
Taxpayers usually receive a refund when too much money has been withheld, and they have overpaid taxes in the previous year. This money can represent a substantial amount for many families, and it is money that they can use discretionally for any expenses or needs.
“Some people may not realize they may be owed a refund,” Werfel said. “We encourage people to review their files and start gathering records now, so they don’t run the risk of missing the May deadline.”
The states with the largest number of taxpayers eligible to receive the money are Texas, California, Florida and New York. In addition, many low- and moderate-income workers are eligible to claim the Earned Income Tax Credit, which can be worth up to $6,660 for taxpayers with qualifying children.
Claiming a Tax Refund From the IRS, Step By Step
Claiming a refund from the IRS is a simple process, but it has to be done carefully in order for it to be accepted and processed correctly. The first thing is to have the completed W-2 income form on hand, along with any other documents that support your claims for tax deductions or credits. Complete and file your tax return using IRS Form 1040 or another form appropriate and appropriate to your tax situation.
Before submitting, carefully review your return to make sure it is complete and accurate. Verify that you have claimed all applicable credits and deductions.
Once the IRS receives your tax refund request, wait patiently, because this may take some time. The entity processes tens of millions of applications in a short time, and that’s why your money may take. If your return is approved, and you have a pending refund, the IRS will send you your money by direct deposit or by check in the mail, as specified on your return.