About 940,000 people could be entitled to unclaimed tax refunds from the 2020 tax year due to the non-filing of their returns. The deadline to submit and get these refunds is May 17th. According to the Internal Revenue Service (IRS), the average refund amount for these taxpayers could exceed $900.
IRS Commissioner Daniel Werfel noted that there is a significant amount of money waiting to be claimed by those who did not file their tax returns for the year 2020. This group of people could collectively receive about a billion dollars in tax refunds, as long as they submit their returns before the aforementioned deadline.
How to Claim Your Refund From the 2020 Tax Season
Potential refunds vary by state, with the typical amount being around $761 in Idaho and exceeding $1,000 in states such as New York and Pennsylvania. The IRS emphasizes that these figures are estimates and that the actual amounts depend on each taxpayer’s individual tax situation.
Some people might have forgotten to file their 2020 tax returns due to exceptional circumstances during the pandemic. However, the number of people who should receive refunds for this year is not at record levels, according to Eric Smith, an IRS spokesman. By comparison, last year, about 1.5 million people were potentially entitled to unclaimed refunds from the 2019 fiscal year.
The IRS has extended the three-year deadline for filing 2020 tax returns to May 17, 2024, due to the pandemic. This means that those who did not file their returns last year still have the opportunity to do so and claim their refunds.
Consider that some unclaimed refunds may be the result of part-time workers or other taxpayers who didn’t earn enough to require filing a return. The filing threshold for 2020 was $12,400 for single taxpayers and $24,800 for couples filing jointly.
In addition to tax refunds, some people may be eligible for recovery refund credits if they did not receive the pandemic stimulus checks in 2020. These credits are refundable and can help those with minimal or no income get a tax refund.
To file a 2020 tax return, taxpayers must do it on paper, either personally or through a tax preparer. The IRS does not accept electronic returns for years prior to the current one. It is recommended to send the return by registered mail to have proof of sending and receipt by the IRS.
What if I Miss the “Tax Day” Deadline?
If you missed the April 15 deadline to file your 2023 tax return, it’s crucial to take action as soon as possible. Applying early is key for several important reasons. First of all, if the IRS owes you a refund, you won’t be able to receive it until you file your return. This means that any money due to you will not be available to you until you complete this process.
On the other hand, if you owe taxes to the IRS, filing your return on time can help you minimize the penalties and interest that accrue for the time that passes without fulfilling your tax obligations. The sooner you resolve this situation, the less the financial impact will be in terms of additional penalties.
Take into consideration that if you have a history of filing on time and meet certain criteria, you can apply for a penalty waiver, and that’s why it’s important to have a peacefull relationship with the IRS. This means that you could avoid or reduce the penalties that would otherwise be applied for non-presentation or late payment.
