In need of some extra money? You might want to check your 2020 tax records.
The IRS announced Monday that around 940,000 people in the U.S. have unclaimed refunds from 2020, “which total more than $1 billion nationwide,” according to The Associated Press.
If you think you’re one of those people, you have until May 17 to submit the relevant tax returns, the article noted.
How much do you usually get back on tax returns?
The median for individual unclaimed refunds from 2020 is $932, per The Associated Press.
The states with the largest amount of people potentially eligible for the unclaimed refunds are:
- Texas — 93,400.
- California — 88,200.
- Florida — 53,200.
- New York — 51,400.
According to The Washington Post, only Pennsylvania ($1,031) and New York ($1,029) have median unclaimed refunds above the $1,000 mark.
Utah is estimated to have 7,800 unclaimed returns totaling $8,191,700, with a median unclaimed refund amount of $836, per the IRS.
Why is the IRS announcing this?
While taxpayers typically have three years to file and accept their tax return, the IRS extended the due date for 2020 tax returns because of the pandemic, per Axios. If taxpayers don’t claim their tax refunds, the unclaimed money becomes property of the U.S. Treasury.
The IRS is asking for people to double-check if they received the recovery rebate credits addressing the COVID-19 pandemic — the first two in 2020, and a third in 2021, according to The Washington Post.
“We want taxpayers to claim these refunds, but time is running out for people who may have overlooked or forgotten about these refunds,” IRS Commissioner Danny Werfel said in a statement to The Associated Press.
IRS spokesperson Eric Smith said to The Washington Post that if taxpayers did not receive one or more of the stimulus packages, then they should file now.
Smith told the Washington Post, “Don’t assume that you can wait until next year to claim it.”
Who typically has unclaimed refunds, and how does the IRS know this?
According to The Washington Post, “The IRS looks at the W-2 and 1099 forms and other third-party statements it receives from employers, banks and other sources to estimate how many people might be due a refund and for how much, on average.”
The people who are among the most likely to have an unclaimed tax refund from 2020 are those who didn’t file a return in 2020 and those who failed to claim the earned income tax credit, according to The Washington Post.
- If you want to see your 2020 refund status: Call 800-829-1040. The IRS has a “Where’s My Refund” tool on its website, but it only tracks this year and the previous two years.
- If you can’t access your forms: Ask your employer for a duplicate. If that’s not possible, go to this IRS page for an online copy. If you can’t get your W-2 online, file IRS Form 4506-T to request transcripts.
How you can file your return
Per Axios, you can request a W-2, 1098, 1099 or 5498 document from your employer or bank, or order a free wage and income transcript directly from the IRS to file a 2020 tax return. You can request the transcripts both online and by mail.