IRS Urges South Carolinians to Claim $12.5 Million in Unclaimed 2020 Tax Refunds by May 17

The IRS urges 11,900 South Carolinians to file their 2020 tax returns to claim $12.5 million in unclaimed refunds before the May 17 deadline. Taxpayers can gather necessary documents and file returns to secure their refunds, which will be added to the U.S. Treasury if unclaimed.

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Salman Akhtar
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IRS Urges South Carolinians to Claim $12.5 Million in Unclaimed 2020 Tax Refunds by May 17

IRS Urges South Carolinians to Claim $12.5 Million in Unclaimed 2020 Tax Refunds by May 17

The Internal Revenue Service (IRS) is calling on approximately 11,900 South Carolinians to file their 2020 federal tax returns and claim their share of $12.5 million in unclaimed refunds before the May 17, 2024 deadline. With an average median refund of $840, the IRS stresses that there is no penalty for claiming a refund on a late-filed tax return. However, any refunds left unclaimed after the deadline will be added to the U.S. Treasury.

Why this matters: This story highlights the importance of staying on top of personal finances and tax obligations, as overlooking potential refunds can have significant financial implications for individuals and families. This story highlights the importance of staying on top of personal finances and tax obligations, overlooking potential refunds having significant financial implications for individuals and families. Moreover, unclaimed refunds can have a broader impact on the economy, the funds potentially being reinvested in local communities rather than being absorbed by the U.S. Treasury. Treasury.

IRS Commissioner Danny Werfel recognizes that the unusual circumstances during the pandemic may have led to people overlooking potential refunds. "People may have just overlooked these, including students, part-time workers, and others. Some people may not realize they may be owed a refund," Werfel says.

To claim an unclaimed refund, South Carolinians who haven't filed a 2020 tax return must do so. The IRS offers several options to gather the necessary information, such as requesting copies of key documents like Forms W-2, 1098, 1099, or 5498 from employers, banks, or other payers. Taxpayers can also use the "Get Transcript Online" tool at IRS.gov to obtain a free wage and income transcript or file Form 4506-T with the IRS to request a wage and income transcript, although this option may take several weeks.

Beyond the unclaimed tax refunds, the IRS points out that around 85,000 South Carolina taxpayers never claimed the 2020 or 2021 COVID-era stimulus payments. These stimulus payments, issued in March-April 2020, December 2020, and March-April 2021, provided eligible individuals with up to $1,200, $600, and $1,400, respectively. Taxpayers can check if they received any COVID-era stimulus checks by creating an IRS Online Account.

With the May 17 deadline approaching, the IRS urges South Carolinians to review their records and start gathering the necessary documents to claim their unclaimed refunds. By taking action before the deadline, taxpayers can ensure they receive the money they are entitled to and avoid losing out on potential refunds.

South Carolinians have a limited window of opportunity to claim their share of the $12.5 million in unclaimed 2020 tax refunds before the May 17 deadline. By filing their returns and gathering the necessary information, taxpayers can secure the money they are owed and prevent potential refunds from being added to the U.S. Treasury.

Key Takeaways

  • The IRS is calling on 11,900 South Carolinians to claim $12.5 million in unclaimed 2020 tax refunds.
  • Average median refund is $840, with no penalty for claiming a refund on a late-filed tax return.
  • Refunds left unclaimed after May 17, 2024, will be added to the U.S. Treasury.
  • 85,000 South Carolina taxpayers never claimed 2020 or 2021 COVID-era stimulus payments.
  • May 17, 2024, is the deadline to claim unclaimed refunds and stimulus payments.