As the tax season unfolds, the Internal Revenue Service (IRS) is sending out a clarion call to Americans: check your records for potential unclaimed refunds before it’s too late. With a looming deadline of May 17, 2024, taxpayers across the nation, including thousands in Texas, have an opportunity to claim their share of over $1 billion in unclaimed refunds from the 2020 tax year.
According to IRS Commissioner Danny Werfel, approximately 940,000 individuals nationwide are on the verge of forfeiting their rightful refunds if they fail to file their tax returns for the year 2020. The average median refund stands at a substantial $932, offering a significant financial boost to those who may have overlooked or forgotten about their potential entitlements.
Among the states with the highest number of individuals potentially eligible for these refunds are Texas, California, Florida, and New York. In Texas alone, an estimated 93,400 people stand to benefit from unclaimed refunds, highlighting the importance of spreading awareness about this opportunity.
The deadline extension to May 17 for 2020 unfiled tax returns comes as a result of the ongoing COVID-19 pandemic, providing taxpayers with extra time to gather necessary documentation and submit their claims. However, it’s crucial to note that individuals who have not filed their tax returns for the subsequent years, namely 2021 and 2022, may see their 2020 refunds withheld until they fulfill their filing obligations for those years.
To facilitate the process of claiming refunds, the IRS advises taxpayers to obtain essential documents such as W-2, 1098, 1099, or 5498 forms from their employers or financial institutions. Additionally, individuals can utilize the “Get Transcript Online” tool available on IRS.gov to order a free wage and income transcript, simplifying the verification process.
Failure to file and claim tax refunds within the allotted three-year window results in the funds reverting to the possession of the U.S. Treasury, emphasizing the importance of timely action by eligible taxpayers.
With tax season in full swing and the deadline for claiming 2020 refunds fast approaching, IRS Commissioner Werfel urges individuals not to miss out on this opportunity for financial relief. “We want taxpayers to claim these refunds,” Werfel states, “but time is running out for people who may have overlooked or forgotten about these refunds.”
In conclusion, as the clock ticks down to May 17, 2024, taxpayers are encouraged to seize the opportunity to reclaim their unclaimed refunds from the 2020 tax year, ensuring that their hard-earned money remains rightfully theirs.