If you didn’t submit a tax return during the height of the COVID-19 pandemic and believe you’re entitled to a refund, the Internal Revenue Service (IRS) is reaching out to you.
This week, the agency announced that over $1 billion in unclaimed refunds for the 2020 tax filing year are currently held by the IRS, and eligible individuals can still make a claim.
As a result of the pandemic, taxpayers were granted an extended period beyond the usual three-year window for filing returns. They now have until May 17, 2024, to claim refunds for the 2020 tax year.
“Money is still available for hundreds of thousands of individuals who haven’t filed their 2020 tax returns,” stated IRS Commissioner Danny Werfel.
“We encourage taxpayers to seize these refunds, but time is running out for those who may have overlooked or forgotten about them. The deadline to file these returns is May 17, so taxpayers should act promptly to ensure they don’t miss out.”
The IRS has calculated the median refund amount for 2020 to be $932. This means that half of the refunds are higher than $932 and half are lower.
“People faced extremely unusual situations during the pandemic, which may have led some people to forget about a potential refund on their 2020 tax returns,” Werfel said.
“People may have just overlooked these, including students, part-time workers, and others. Some people may not realize they may be owed a refund. We encourage people to review their files and start gathering records now, so they don’t run the risk of missing the May deadline.”
Many low- and moderate-income workers may also be eligible for the Earned Income Tax Credit (EITC), worth as much as $6,660 for taxpayers with qualifying children for the 2020 tax year.
The IRS notes 2020 tax refunds may be held if an individual has not filed tax returns for 2021 and 2022.
