The Internal Revenue Service (IRS) has issued a crucial reminder to residents of South Carolina: time is running out to seize their share of $12.5 million in unclaimed tax refunds. Approximately 11,900 South Carolinians have until May 17 to file their 2020 federal tax returns and retrieve the refunds they are rightfully owed.
The average median refund for South Carolinians stands at a substantial $840 for the tax year 2020, highlighting the significance of this opportunity for many individuals and families in the state. Importantly, the IRS emphasizes that there will be no penalties for late-filing in this instance, assuring taxpayers that they can claim their refunds without fear of repercussions.
Commissioner Danny Werfel of the IRS underscored the unique circumstances brought about by the pandemic, acknowledging that many people may have inadvertently overlooked the possibility of a refund amidst the challenges of the past years. He urged individuals, including students and part-time workers, to review their records promptly to avoid missing the impending deadline.
For those who have not yet filed their 2020 tax returns, there are several avenues available to facilitate the process of claiming their refunds. One option is to request copies of essential documents such as Forms W-2, 1098, 1099, or 5498 from their respective employers, banks, or other relevant sources. Alternatively, taxpayers can utilize online tools provided by the IRS, such as Get Transcript Online, to obtain necessary documentation swiftly and conveniently.
Furthermore, individuals can file Form 4506-T with the IRS to request a “wage and income transcript,” which contains pertinent data from information returns received by the IRS. While this option may take several weeks for processing, it remains a viable route for those seeking to retrieve their refunds.
In addition to these resources, the Tax Clinic at the University of South Carolina Rice School of Law is offering assistance to eligible residents in navigating the refund process. Qualifying individuals with household incomes below 250% of the federal poverty level can avail themselves of the services provided by the Tax Clinic, ensuring that financial barriers do not hinder their ability to claim owed refunds.
It’s crucial for South Carolinians to take advantage of this opportunity before the May 17 deadline to secure their rightful refunds. Failure to do so will result in unclaimed refunds being absorbed into the U.S. Treasury, representing a missed opportunity for many individuals and families across the state.
As the deadline approaches, residents are encouraged to act swiftly, gather necessary documentation, and seek assistance if needed to ensure they receive the refunds they are owed from the tax year 2020. By taking proactive steps now, South Carolinians can alleviate financial burdens and make the most of this valuable opportunity provided by the IRS.