The IRS says there’s over $1 billion in unclaimed tax refunds, and the deadline to claim them is coming up soon. About a million people haven’t claimed their refunds from the 2020 tax year, with the average refund being $932. Here’s what you need to know so you don’t miss out on free money.
Why is the IRS giving out extra money?
You’ve only got a limited time to snag this opportunity by May 17th.
To grab your cash, the IRS says you need to file your 2020 tax return pronto. Originally, you would’ve had until 2023 to file and claim your refund. But thanks to the COVID-19 drama, they extended the deadline.
Good news: if you’re due a refund, there’s no penalty for filing late..
Normally, you’ve got three years to file your taxes and snag your refund. But if you miss that window, Uncle Sam scoops up the cash for himself.
After that three-year window, the IRS can’t cut you a check or apply any credit. Your refund money will basically vanish and go back to the government
Now, for the 2019 tax season, things got a bit different because of the whole COVID-19 situation. The IRS gave folks extra time to file and claim their refunds, pushing the deadline to July 17, 2023.
IRS Commissioner Danny Werfel pointed out, “The 2019 tax returns came due during the pandemic, and many people may have overlooked or forgotten about these refunds.” He urged everyone to get on it before the July 17 deadline.
The IRS even took to Twitter on April 26 to get the word out: “You’d normally have up to 3 years to claim a tax refund, but due to the pandemic, #IRS extended the deadline to file your 2019 tax return to July 17, 2023. If you didn’t file, don’t miss out.”
And they spiced it up with a cat meme, because who doesn’t love cats? The caption? “Like finding cash? There’s $1.5 billion in tax refunds yet to be claimed from 2019.”
Other important filing information to know
In their news release, the IRS dropped some knowledge: skipping out on filing your 2019 tax return isn’t just about missing out on a refund. For many folks bringing home modest incomes, there’s also the chance to score big with the Earned Income Tax Credit (EITC).
This EITC thing was pretty sweet in 2019, offering up to $6,557 in tax relief. It’s like a financial hug for folks whose incomes dipped below certain thresholds back then. Want in on the action? Here are the income limits:
- If you had three or more kiddos, you could qualify if you made less than $50,162 ($55,952 if you tied the knot and filed taxes together).
- Got two little ones? You might qualify if your income was under $46,703 ($52,493 if hitched).
- Even with just one mini-me, you could still cash in if you earned less than $41,094 ($46,884 if married).
- And if it was just you against the world, making under $15,570 ($21,370 if you said “I do”) could put some EITC cash in your pocket.
More important filing information
But here’s what you need to know. Your refund might get held up if you didn’t file for 2020 and 2021 either. The IRS might tap into that refund to cover any outstanding debts, like unpaid taxes, child support, or even past-due student loans.
Don’t worry—don’t delay getting your return. You can still snag those forms and instructions for filing your 2019 taxes. Just hit up the IRS website or give them a ring at 1-800-829-3676, and you’ll be on your way to potentially cashing in on that EITC goldmine.
The IRS usually has very strict rules when it comes to filing, but this time around, they are more understanding of people’s circumstances. Make sure you take advantage of this generosity and file your taxes to get your refund as soon as possible.