About one million people have not yet filed their 2020 tax returns to be eligible to apply for a refund from the Internal Revenue Service (IRS). The agendy claims to have more than one billion dollars in unclaimed tax refunds because eligible people did not submit the corresponding tax returns for the year 2020.
As we have been alerting in recent articles, the deadline to file a claim for the 2020 tax year is today, May 17th, 2024. After this date, the money becomes the property of the Treasury, that is, the Federal Government appropriates the money of those people who did not claim it. And, uh, yeah, they can do that.
It is true that there is no penalty for not filing the return in case there is a refund, but all returns must be filed within three years after the deadline for the refund to be valid.
The deadline for filing the 2020 tax returns was May 17, 2021. The deadline was extended from the original one, which was April 15, 2021, due to the coronavirus pandemic.
Other Benefits of Filing Your 2020 Tax Return: Up To $6,660 in Tax Credits
In addition to 2020 unclaimed tax refunds, non-filers may also be eligible to apply for the Earned Income Tax Credit (EITC), the Recovery Rebate Credit, and other applicable credits during that tax year. They are not negligible amounts: for example, the 2020 EITC was worth up to $6,660 for taxpayers with qualifying children, according to the IRS.
How to claim the 2020 tax refund? Taxpayers can request copies of any missing Form W-2, 1098, 1099 or 5498 from their employer, bank or other payers to file their 2020 tax return, the IRS explained. They can also get an income and wage statement for free through the IRS Get Transcript Online tool. The agency claims that this is the fastest and easiest way to obtain these necessary documents.
The Average Tax Refund in 2020
How much money are we talking about? The agency says that the average unclaimed refund amount for the year 2020 is $932, but more than half of them are higher than that amount, according to available statistics. Remember that the amount you will receive back depends on your specific tax situation, how much income you had, how many expenses, etc., and that you are up-to-date with all your tax obligations. If you have federal debts or other problems, such as unpaid child support, you may not receive any refunds.
So, what are you waiting for? Run now to file your tax return for the year 2020 to be able to claim that refund of $932, before the Treasury Department withholds it and converts it into federal expenses as established in the legislation of this type of refunds!
