Time is running out to claim $1 billion in unclaimed refunds from the IRS

The IRS is reminding users to claim any unclaimed refunds before it’s too late. Notices to the IRS to claim unclaimed refunds are for previous years, not the current year. According to the IRS, there is nearly $1 billion in unclaimed refunds.

Unclaimed Refunds from the IRS: Who Can Claim?

The IRS announced in a press release last week that approximately 940,000 people across the country risk losing their 2020 tax year refunds if they do not file their tax returns by the May 17 deadline.

Overall, refunds amount to nearly $1 billion, with the median 2020 refund being $932. The majority of unclaimed refunds from the IRS are due to federal stimulus checks sent during the COVID-19 pandemic.

“Hundreds of thousands of people who did not file their 2020 tax returns are left with money,” IRS Commissioner Danny Werfel said in a statement. “We want taxpayers to claim these refunds, but time is running out for those who have overlooked or forgotten to file these refunds.

According to the IRS, Texas, California, Florida and New York have the most taxpayers eligible to receive unclaimed refunds from the IRS. For example, 93,400 taxpayers may be eligible for a refund in Texas, 88,000 in California, about 53,200 in Florida, and about 51,400 in New York.

For taxpayers who have already filed a 2020 return but haven’t received a refund, the IRS says their funds may be withheld if they haven’t filed 2021 and 2022 returns. Additionally, the IRS specifies all refunds. 2020 amounts may be applied to amounts owed to the IRS or state tax agency. Your refund may also be used to pay other outstanding federal debt, such as unpaid child support or student loans.

When is the deadline?

Taxpayers typically have three years to file and claim a tax refund. If the taxpayer does not file a return during that period, the money is legally transferred to the Treasury.

Due to the COVID-19 pandemic, taxpayers have had more time than usual to file their 2020 taxes. The typical filing deadline to claim an existing refund is around the April tax deadline, or April 15 for 2023 tax returns. However, the three-year period for 2020 unfiled returns has been extended to May 17, 2024.

Therefore, taxpayers who missed their first and second stimulus checks in 2020 must file an amended 2020 income tax return by May 17. Starting in 2021, taxpayers who did not receive their third stimulus check must file an amended tax return by April 15, 2025. That year.

Additionally, taxpayers must file an amended return if they believe they did not receive their full stimulus payment. Taxpayers can check the amount of their stimulus check by visiting their online IRS account.