Rhode Island residents who have yet to file their 2020 tax returns are being urged to do so before May 17 to claim approximately $3 million in owed tax refunds. The Internal Revenue Service (IRS) has highlighted that failing to file before this date will result in the refunds reverting to the U.S. Treasury.
Around 2,600 individuals in Rhode Island are still eligible for refunds, with the median refund estimated at $986 per person. These refunds stem from various sources, including withheld income from employers and tax credits such as the earned income tax credit, potentially worth up to $6,660 for eligible taxpayers.
Moreover, the May 17 deadline serves as the final opportunity for individuals to file for the “Recovery Rebate Credit” if they missed out on stimulus payments during the pandemic due to low income.
For those in need of assistance with filing their returns, the Volunteer Income Tax Assistance (VITA) program offers free tax preparation services to individuals earning below a $64,000 yearly income limit. With 24 VITA sites across the state, including many in Providence, taxpayers can receive help in various languages, including English, Spanish, Portuguese, Mandarin, Vietnamese, Arabic, French, Korean, and Russian.
Meanwhile, the IRS is also taking action against individuals who have failed to file taxes, particularly targeting high-income earners. Compliance letters are being sent to over 125,000 individuals, including those with reported incomes exceeding $1 million.
On the other hand, individuals estimated to be owed refunds will not receive such letters from the IRS.
Furthermore, for those who have yet to file their 2023 taxes, the IRS’ “Free File” program provides free tax preparation software for individuals earning up to $78,000 annually. Rhode Island residents can benefit from six companies offering free preparation of federal and state tax returns.
For those requiring assistance with tax issues unrelated to this year’s return, the IRS operates two Taxpayer Assistance Centers in Rhode Island, located in Providence and Warwick.
With the May 17 deadline fast approaching, Rhode Island taxpayers are encouraged to take advantage of available resources to ensure they receive any owed refunds and meet their tax obligations.