Over $1 Billion in Unclaimed Tax Refunds from 2020: IRS Urges Action Before May 17 Deadline – Are You Eligible?

The IRS has disclosed over $1 billion in unclaimed tax refunds from 2020. Close to 1 million Americans risk losing their refunds if they fail to act before the May 17 deadline.

IRS Reports Nearly 1 Million Unclaimed Tax Refunds for 2020

The IRS reports approximately 940,000 people nationwide still need to file 2020 tax returns. The estimated median refund is $932. Alabama has the highest unclaimed refunds at $16,839,800, followed by Alaska, Arizona, Arkansas, and California, according to Market Realist.

Read also: Alaskans Will Receive A New Form Of Stimulus Checks Next Week, How Much Will They Receive?

(photo: Baselinemag)

Eligible Americans

Workers with low to moderate incomes

Financial support may be available to individuals who fall within income thresholds determined by the IRS, and these thresholds are designed to aid those with modest earnings who require assistance.

Qualifying children

Eligible dependents meeting IRS criteria allow American families to claim EITC, which offers extra financial support that is particularly beneficial for those with children.

Americans who missed out on Economic Impact Payments

Individuals who missed out on or didn’t fully receive COVID-19 stimulus payments can claim the Recovery Rebate Credit on their tax return for potential relief. This credit aims to compensate for any missed stimulus payments during the pandemic.

2020 Tax Return Filing Quick Guide for Potential Refunds

Filing a 2020 tax return for potential refunds is time-sensitive and straightforward. Essential documents like Form W-2, Form 1099, and Form 5498 are needed. These can be obtained from employers or banks, and the IRS provides tools like “Get Transcript Online” for assistance.

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