The Internal Revenue Service (IRS) is urging Americans to file their 2020 tax returns as they may be missing out on unclaimed refunds. According to the IRS, around 940,000 individuals have yet to claim their refunds from 2020, totaling approximately $1 billion in unclaimed money.
The average refund for 2020 is $932.00 USD, and taxpayers have until May 17 to file their returns and claim their money. IRS Commissioner Danny Werfel emphasized the importance of taxpayers claiming their refunds before time runs out.
Additionally, taxpayers who have not filed their 2020 returns may also be eligible for the Earned Income Tax Credit (EITC). The EITC is a benefit that can provide a significant refund, with the maximum amount reaching $6,660.00 USD and being fully refundable.
To qualify for the EITC, taxpayers must meet certain income thresholds based on the number of qualifying children they have. The income thresholds range from $15,820.00 USD for individuals without qualifying children to $50,594.00 USD for individuals with three or more qualifying children.
It is important to note that taxpayers seeking a 2020 tax refund may have their money withheld if they have not filed their tax returns for 2021 and 2022, or if they have outstanding tax debts or child support payments.
If you think you may be eligible for an unclaimed tax refund from 2020, be sure to file your return before the May 17 deadline to claim your money.