IRS Urges Action: $1 Billion in Unclaimed Tax Refunds Await Americans Before May 17 Deadline
Unclaimed Tax Refunds: IRS Highlights $1 Billion Opportunity for Individuals and Economy
With the May 17 deadline for tax filings fast approaching, the Internal Revenue Service (IRS) has sounded the alarm about over $1 billion in unclaimed tax refunds from the 2020 tax year. according to the published article of MARKET REALIST. Nearly 1 million individuals across the United States have yet to file their tax returns for 2020 prompting the IRS to urge them to act swiftly to claim their refunds. IRS Commissioner Danny Werfel emphasized the urgency of the situation stating, “We want taxpayers to claim these refunds, but time is running out for people who may have overlooked or forgotten about these refunds.”
The IRS disclosed that the estimated median refund owed to these individuals is approximately $932 highlighting the significant financial impact awaiting those who file their returns. State-specific data released by the IRS revealed staggering amounts of unclaimed refunds, with Alabama leading the pack at $16,839,800, followed closely by Alaska, Arizona, Arkansas and California. Moreover, the IRS emphasized that several low- and moderate-income workers may be eligible for the Earned Income Tax Credit (EITC) potentially worth up to $6,660 for qualifying taxpayers with children in 2020. Additionally, individuals who missed out on one or more Economic Impact Payments or stimulus payments may be eligible for the COVID-era Recovery Rebate Credit for 2020 further underscoring the importance of filing tax returns to claim these benefits.
$1 Billion Unclaimed Tax Refunds: IRS Issues Urgent Reminder Ahead of May 17 Deadline
Furthermore, the IRS’s outreach underscores the broader implications of unclaimed tax refunds on individual finances and the economy as a whole. With millions of dollars left unclaimed there is a significant opportunity for individuals to improve their financial well-being by accessing funds rightfully owed to them. Additionally, the unclaimed refunds represent a missed opportunity for economic stimulus, as injecting these funds back into the economy could have positive ripple effects, especially during times of economic uncertainty. As the May 17 deadline approaches, the IRS’s call to action serves as a reminder for individuals to take advantage of available resources and ensure they receive the refunds and credits they are entitled to, ultimately benefiting both individuals and the economy at large.