Do you know that the IRS experiences over 1 billion {dollars} in unclaimed tax refunds yearly? That’s proper, greater than a billion {dollars} of cash that’s owed to taxpayers throughout the nation is reported by the IRS yearly and tax filers who didn’t file their 2020 tax returns but have till Might 17, 2024 to file their 2020 tax returns. How did this occur?
Generally, refunds go unclaimed as a result of taxpayers who don’t meet the IRS revenue threshold requirement to file a tax return are literally entitled to a tax refund, however since they by no means file a return, they’ll’t declare that cash.
One other portion of unclaimed tax refunds that the IRS could also be holding onto might embrace the Earned Earnings Tax Credit score, or EITC. It is a tax credit score, nota deduction, that’s out there to many decrease to average revenue staff, and this credit score usually goes unclaimed. The utmost credit score for EITC for 2020 was value as a lot as $6,660.
If this sounds such as you, it’s time to get to work so are you able to declare what’s rightfully yours. One factor to remember is the IRS locations only a three yr window on claiming these previous refunds. Normally, tax filers have three years from the unique tax deadline to file and declare a tax refund. The deadline can be normally the April tax deadline. However for 2020 tax returns, the date was postponed to Might 17, 2024, for the reason that deadline for tax yr 2020 was prolonged to Might 17 beneath COVID aid. After that point lapses, the cash goes to the Treasury.
The deadline to assert tax yr 2020 refunds (the tax return you usually would have filed in 2021) is Might 17, 2024. You’ll additionally wish to observe that if you wish to declare a refund from two or three years in the past, you’ll doubtless want to verify all subsequent yr tax returns have been filed to ensure that the funds to be launched. Should you haven’t filed a 2020 tax return, you must rapidly file to probably get this refund.
Should you’re fascinated about claiming a possible refund which may be a number of years outdated, you’ll have to pull collectively some documentation that data your revenue and taxes paid all year long in addition to deductible bills. Developing with W-2 and 1099 types a number of years in the past might take a while. This is the reason it’s essential to maintain all tax-related paperwork in a secure place for at the very least 3-7 years.
Should you can’t find your paperwork wanted to file your 2020 taxes, the subsequent step can be to contact your employer or payer on the time in query and request copies of the types. If these efforts are unsuccessful, you will get a free transcript from the IRS displaying info from these year-end paperwork by ordering a free wage and revenue transcript at IRS.gov utilizing the Get Transcript On-line software or by submitting Type 4506-T to request a wage or revenue assertion.
Have in mind, based on IRS tax submitting statistics, the common refund for 2020 was over $2,600 and the IRS estimates that half of the unclaimed refunds for 2020 are greater than $932.
So, take into consideration your state of affairs and resolve if doing slightly legwork to trace down documentation and submitting outdated tax returns is value it. You will have a refund for earlier years coming your approach.
In case you have not filed your 2023 taxes but and made lower than the IRS revenue submitting requirement($13,850 single, $27,700 married submitting collectively, and $20,800 head of family), don’t delay submitting your 2023 taxes. It’s possible you’ll be leaving cash on the desk by not submitting. Particularly if you happen to had federal taxes withheld out of your paychecks or you’re eligible for a tax credit score just like the Earned Earnings Tax Credit score or training credit for college students.
Don’t fear about understanding these tax guidelines. It doesn’t matter what strikes you made final yr, TurboTax will make them rely in your taxes. Whether or not you wish to do your taxes your self or have a TurboTax professional file for you, we’ll be sure you get each greenback you deserve and your greatest doable refund – assured.
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