File Your Taxes: You May Have Unclaimed Refunds Waiting

Do you know that the IRS reports 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 Could 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. This can be a tax credit score, nota deduction, that’s obtainable to many decrease to reasonable revenue staff, and this credit score usually goes unclaimed. The utmost credit score for EITC for 2020 was price 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 12 months 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 also be often the April tax deadline. However for 2020 tax returns, the date was postponed to Could 17, 2024, because the deadline for tax 12 months 2020 was prolonged to Could 17 underneath COVID reduction. After that point lapses, the cash goes to the Treasury.

The deadline to say tax 12 months 2020 refunds (the tax return you usually would have filed in 2021) is Could 17, 2024. You’ll additionally need to notice that if you wish to declare a refund from two or three years in the past, you’ll doubtless want to ensure all subsequent 12 months tax returns have been filed to ensure that the funds to be launched. If you happen to haven’t filed a 2020 tax return, you should quickly file to doubtlessly get this refund.

If you happen to’re occupied with claiming a possible refund that could be a couple of years outdated, you’ll have to pull collectively some documentation that data your revenue and taxes paid all year long in addition to deductible bills.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 couple of years in the past might take a while. That is why it’s vital to maintain all tax-related paperwork in a protected place for at the very least 3-7 years.

If you happen to can’t find your paperwork wanted to file your 2020 taxes, the subsequent step could be to contact your employer or payer on the time in query and request copies of the types. If these efforts are unsuccessful, you may get a free transcript from the IRS displaying data from these year-end paperwork by ordering a free wage and revenue transcript at IRS.gov utilizing the Get Transcript Online software or by submitting Type 4506-T to request a wage or revenue assertion.

Take note, according to IRS tax filing statistics, the average 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 scenario and resolve if doing somewhat legwork to trace down documentation and submitting outdated tax returns is price it. You’ll have a refund for earlier years coming your method.

When you’ve got 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 should you 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 schooling credit for college students.

Don’t fear about realizing these tax guidelines. It doesn’t matter what strikes you made final 12 months, TurboTax will make them depend in your taxes. Whether or not you need to do your taxes your self or have a TurboTax expert file for you, we’ll ensure you get each greenback you deserve and your greatest doable refund – assured.