Did you know millions of dollars in tax refunds go unclaimed every year? If you haven’t filed your 2020 tax return yet and believe you might be due a refund, this information is crucial! The deadline to claim your 2020 tax refund is fast approaching: May 17th, 2024.
Over $1 Billion in Unclaimed Refunds!
The IRS estimates that a staggering number of taxpayers – roughly 940,000 – haven’t filed their 2020 returns. This translates to over $1 billion in unclaimed tax refunds waiting to be received! The average refund for 2020 sits around $932, but it could be significantly higher if you haven’t claimed the COVID-era Recovery Rebate Credit.
Missing the Deadline Means Losing Your Money
Taxpayers typically have three years to file and claim tax refunds. This usually means the deadline to claim refunds for past tax years falls on the April tax deadline, three years after the original return filing deadline. However, due to the disruptions caused by the COVID-19 pandemic, the original filing deadline for 2020 returns was extended by a month. As a result, the three-year window to claim your 2020 tax refund has also been shifted to May 17th, 2024.
Missing this deadline signifies forfeiting your refund, and that money becomes property of the U.S. Treasury. Don’t let this happen!
More Than Just Refunds at Stake
Filing your 2020 tax return isn’t just about claiming a refund; it unlocks valuable tax benefits you might be missing out on. Low- and moderate-income earners could be eligible for the Earned Income Tax Credit (EITC). This credit offers significant tax relief for individuals and families meeting specific income thresholds.
For 2020, the EITC eligibility varied depending on your filing status and the number of dependents you claim. For example, unmarried filers with three or more qualifying children could claim the credit if their income fell below $50,594.
Parents entitled to claim the refundable portion of the Child Tax Credit also risk losing this benefit if they neglect to file their return.
Filing Your 2020 Tax Return: What You Need to Know
To claim your 2020 tax refund, ensure your return is correctly addressed, mailed, and postmarked by May 17th, 2024. Obtaining proof of mailing from the post office is a wise precaution in case the IRS questions the mailing date.
The good news? There’s no penalty for filing a late return if you’re expecting a refund.
Important Reminders for Taxpayers Seeking Refunds
- The IRS will withhold your 2020 refund check if you haven’t filed tax returns for 2021 and 2022.
- Any outstanding debts owed to the IRS, such as unpaid child support or student loans, will be deducted from your refund amount.
- Consider seeking professional assistance if you’re unsure about filing your 2020 tax return or require help navigating the process.
Don’t let your hard-earned money slip away! Take action before the May 17th deadline and claim the tax refund you deserve. If you need help filing your 2020 return or have any questions, feel free to contact us – we’re here to assist you!
