Do you have an unclaimed IRS refund? Here's how to find it before the May 17 deadline (2024)

April 15 has come and gone, but there’s another important tax deadline ahead. The IRS estimates Texans have $107 million in unclaimed federal income tax refunds for the 2020 tax year - when many refunds were boosted because of pandemic-related changes.

The deadline to claim the money is approaching fast.

UNCLAIMED MONEY

During the height of the COVID-19 pandemic, filing a federal income tax return may have fallen on the priority list.

“It's quite possible that a lot of people let their tax returns slip, especially if they're used to getting a refund,” said Clay Sanford, IRS spokesperson.

The IRS estimates it has more than one billion dollars in unclaimed 2020 refunds. It estimates around $107 million of that is due to around 93,400 Texans.

After May 17, the money becomes the property of the U.S. Treasury. Typically, taxpayers have three years to file an old return and claim a refund. During the filing season for the 2020 tax year, the April tax deadline was pushed to May 17, 2021. That means the three-year window for 2020 returns closes on May 17, 2024.

HOW TO FIND OUT IF YOU HAVE A REFUND DUE

Sanford explains: to find out if you’re owed a refund, you’d have to file a federal income tax return for the 2020 tax year.

“In order for you to get the credits, deductions, things that that you would have coming back to you, you will have to file and sign the return,” Sanford said.

Some people worked part-time in 2020 or didn’t make enough income to require them to file a return. According to the IRS: you may get money back if you qualify for a refundable tax credit, your employer withheld federal income tax from your paycheck, or you made estimated tax payments.

“If you are a college student, your parents are claiming you and maybe you had a W2 job on the side, you have a chance for a refund as well,” said Duke Alexander Moore, tax preparer and founder of North Texas-based Duke Tax.

There were pandemic-related circ*mstances and tax credits that boosted refunds for some.

“Say, for instance, you lost your job. Then, you may qualify for credits from that year that you wouldn't otherwise qualify for during other years,” explained Sanford.

The American Rescue Plan Act of 2021 excluded up to $10,200 in individual unemployment compensation in 2020. Taxpayers wouldn’t have been taxed on up to $10,200 on unemployment income that tax year.

In the 2020 tax year, the Earned Income Tax Credit or EITC was worth as much as $6,660 for low and moderate-income workers with qualifying children.

Time is also running out to claim stimulus payments you didn’t receive. If you hadn’t filed a tax return or signed up through an IRS non-filer sign-up tool, the IRS may not have been able to get a stimulus payment to you in 2020 or 2021.

HOW TO PREPARE A 2020 RETURN

Tax prep software programs can help you self-prepare a 2020 return online. While taxpayers can electronically prepare an old return, they can’t electronically file the return. You would have to print and mail the return to the IRS by May 17.

Moore said you can gather your tax documents and information, then work through the return. After you’ve filled in all the questions on a tax return, the software calculates the refund amount.

“The easiest way is probably just to log on to a free tax software, plug in your numbers. Does it give me a refund? OK, I'm going to file and kind of just go from there,” suggested Moore.

You’ll need to collect 2020 tax year documents. If you can’t find an old W2, ask your employer for a copy.

If that’s not possible, you can request an IRS wage and income transcript here.

Once you verify your identity, you can access a transcript online immediately and use the income information to fill out a return.

The IRS says there's no penalty for claiming a refund on a late-filed tax return. According to the IRS 2020 tax refund may be held if you haven’t filed returns for 2021 and 2022 tax years. Refunds may be used toward unpaid taxes for other years, child support or other past due federal debts, like a student loan.

“Try to do it on your own. When in doubt, hire a professional to help you get through it,” said Moore. “Sometimes, it's just worth the service.”

The IRS estimates the median 2020 unclaimed refund for Texans is $960. Your refund may be higher or lower, depending on your tax situation.

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