The Internal Revenue Service (IRS) is about to keep your money… forever. And if you don’t act now, you’re going to miss out on the opportunity to receive a tax refund for the 2020 tax year. To date, more than $1 billion is unclaimed, corresponding to the refunds of about 940,000 people in the United States.
But time is running out: People who qualify for a 2020 IRS refund have until May 17 to file their returns and claim the much-needed money. For those who need to file a return, the IRS recommends that they request their W-2, 1098, 1099 or 5498 from their employer or bank. They can also get a free salary and income transcript using the IRS “Get Transcript” tool.
In this tool, taxpayers can access their tax records online or by mail, including transcripts of previous tax returns, tax account information, wage, and income statements and verification of non-filing letters.
Am I Still on Time to Claim Tax Refunds From 2020?
Normally, taxpayers have three years to file and claim tax refunds; otherwise, the money becomes the property of the U.S. Treasury. However, this year, the deadline for 2020 non-filed returns was postponed until May 17 due to the COVID-19 pandemic.
However, if taxpayers have not filed returns for the 2021 and 2022 tax years, any 2020 refunds will be withheld until they file the returns for those years to make sure they have no outstanding debts.
People who have not yet claimed their refund should act quickly to avoid losing their money, following the steps indicated by the IRS to file their returns and claim the refunds to which they are entitled.
The Average Tax Refunds in 2024
The deadline for filing the federal tax return in the United States has passed, but you can still understand how refunds for the 2023 tax year are being processed and what changes have occurred compared to the previous year.
As of April 19, 2024, the IRS has processed about 136 million returns and refunded approximately $245 billion to U.S. taxpayers. This represents an increase of 3.6% compared to the previous fiscal year.
The average individual refund has also increased, and by an even greater margin. Currently, the average federal income tax refund is $2,850, which is an increase of 3.5% over the previous year.
This increase is not surprising, as the IRS adjusted the standard deduction and tax brackets by about 7% to offset inflation. This has placed some people in lower tax brackets and allowed those who don’t itemize deductions to be able to deduct a larger portion of their income.
The average tax refunds, from 2020, to 2024, could be seen in the next list:
| Tax Year | Average Refund |
|---|---|
| 2020 | $932 |
| 2021 | $2,847 |
| 2022 | $3,172 |
| 2023 | $2,698 |
Take into consideration that the number provided represent national averages, and your actual tax refund may vary depending on your unique tax circumstances. As for tax year 2024, the average refund hasn’t been officially determined yet and is currently an estimate based on early data.
Additionally, the IRS still holds more than $1 billion in unclaimed refunds from tax year 2020. If you suspect you might have an unclaimed refund, you have until May 17, 2024, to file for it.