IRS Urges Nearly 1 Million Americans to Claim $1 Billion in Unclaimed 2020 Tax Refunds by May 17

The Internal Revenue Service (IRS) is urging nearly 1 million Americans to claim their share of $1 billion in unclaimed tax refunds from 2020 before the May 17, 2024 deadline, with the average refund available being $932, particularly benefiting low-and moderate-income workers who may be eligible for the Earned Income Tax Credit (EITC) and Recovery Rebate Credit." This description focuses on the primary topic of unclaimed tax refunds, the main entity of the IRS, and the context of the 2020 tax year. It also highlights the significant action of claiming refunds before the deadline and the potential benefits for low-and moderate-income workers. The description provides objective and relevant details that will guide the AI in creating an accurate visual representation of the article's content, such as a image of a person holding a tax refund check or a graphic illustrating the deadline and refund amounts.

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Aqsa Younas Rana
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IRS Urges Nearly 1 Million Americans to Claim $1 Billion in Unclaimed 2020 Tax Refunds by May 17

IRS Urges Nearly 1 Million Americans to Claim $1 Billion in Unclaimed 2020 Tax Refunds by May 17

The Internal Revenue Service (IRS) is urging nearly 1 million Americans to claim their share of $1 billion in unclaimed tax refunds from 2020 before the deadline of May 17, 2024. The average refund available for those who qualify for the Earned Income Tax Credit (EITC) and Recovery Rebate Credit is $932.

Why this matters: This unclaimed refund amount has significant implications for low-and moderate-income workers who may be struggling to make ends meet, and claiming these refunds could provide a crucial financial boost. Moreover, this situation highlights the importance of tax awareness and education, as many eligible individuals may be unaware of the credits they are entitled to.

IRS Commissioner Daniel Werfel emphasized the importance of claiming these refunds, stating, "There's money remaining on the table for hundreds of thousands of people who haven't filed 2020 tax returns... We want taxpayers to claim these refunds, but time is running out for people who may have overlooked or forgotten about these refunds."

Taxpayers typically have three years to file and claim their tax refunds, but due to the COVID-19 pandemic, they have been given extra time to claim refunds for the 2020 tax year. If taxpayers fail to file and claim their refunds by May 17, the money will become the property of the U.S. Treasury.

Many low-and moderate-income workers may be eligible for the EITC, which was worth up to $6,660 for taxpayers with qualifying children in 2020. The Recovery Rebate Credit is available for those who did not receive one or more of the stimulus checks sent out during 2020 and 2021.

The IRS has provided a state-by-state breakdown of the estimated unclaimed refunds. In Texas, over $107 million in refunds remain unclaimed, the highest amount of any state. California follows with over $94 million in unclaimed refunds, while Florida taxpayers are owed more than $58 million.

To claim their refunds, taxpayers can access current and prior year tax forms, including the 2020 Forms 1040 and 1040-SR, and instructions on the IRS.gov Forms & Instructions page or by calling toll-free 800-TAX-FORM (800-829-3676). There is no penalty for filing late if a refund is due.

With the May 17 deadline quickly approaching, the IRS urges taxpayers to review their records and start gathering necessary documents to file their 2020 tax returns as soon as possible. By claiming these refunds, eligible individuals can take advantage of credits like the EITC and Recovery Rebate Credit, potentially receiving a significant financial boost.

Key Takeaways

  • Nearly 1 million Americans are owed $1 billion in unclaimed tax refunds from 2020.
  • Average refund is $932 for those who qualify for EITC and Recovery Rebate Credit.
  • Deadline to claim refunds is May 17, 2024; otherwise, money goes to U.S. Treasury.
  • Low-and moderate-income workers may be eligible for EITC and Recovery Rebate Credit.
  • No penalty for filing late if a refund is due; taxpayers can claim refunds on IRS.gov.