There are just a few days left until the 2020 refund claim deadline.
People who haven’t yet filed their 2020 tax return may be able to get some money from the IRS. The money in question isn’t stimulus checks, but more than $1 billion in unclaimed tax refunds for the 2020 tax year, as determined by the IRS. However, taxpayers need to hurry as the 2020 refund application deadline is fast approaching.
When is the 2020 refund request deadline?
The IRS recently revealed that it holds more than $1 billion in unclaimed refunds for the 2020 tax year and warned that it will no longer be able to keep those refunds.
The refunds held by the IRS are for people who did not file a 2020 tax return for any reason. Maybe it was because they didn’t think they qualified, forgot to file their taxes, or didn’t want to deal with the stress. Filing a tax return.
In addition to the refund, the agency may also retain the taxpayer’s 2020 Recovery Rebate Credit. According to the IRS, nearly 940,000 people across the U.S. may have received unclaimed refunds for the 2020 tax year, with the average unclaimed refund being $932.
“Taxpayers want to claim these refunds, but time is running out for those who have overlooked or forgotten to file these refunds,” the IRS said in March, adding that it would not withhold refunds after May 17. The deadline for taxpayers to claim their 2020 refund is fast approaching.
Taxpayers generally have three years to claim their existing refund, until the April 15 tax filing deadline. However, in 2020, due to the COVID-19 pandemic, the agency extended the deadline to May 17.
After the May 17, 2020 refund claim deadline, any unclaimed amounts become property of the U.S. Treasury.
How to claim a refund in 2020
To claim a 2020 refund, taxpayers must file a tax return for that year. However, to file a 2020 tax return, taxpayers must gather required documentation related to the 2020 tax year, such as an employer-issued Form W-2, which details the individual’s prior income, including taxes withheld. Contains information.
Taxpayers may also need Form 1099, which is used to report freelance employment income and may also apply to other non-employer income. Another required form is Form 5498, which is used to report contributions to individual retirement accounts.
Taxpayers who do not have these forms can request copies from their employer or bank. Alternatively, taxpayers can use the IRS’s “Get a Transcript Online” tool to obtain a free Wage and Income Transcript that includes the documents needed to file a tax return.
Taxpayers can use online tax software to prepare their returns, but they cannot file their 2020 returns electronically. You will need to print your completed tax return and mail it to the IRS office, depending on where you live.
