IRS Alert: 940,000 Unclaimed Tax Refunds From 2020 Set To Expire Soon
The Internal Revenue Service (IRS) announced that almost 940,000 people across the nation have unclaimed refunds for the tax year 2020 but face a May 17 deadline to submit their tax returns. According to the organization, they estimated over $1 billion in refunds that remain unclaimed because people haven’t filed their 2020 tax returns yet.
“There’s money remaining on the table for hundreds of thousands of people who haven’t filed 2020 tax returns,” said IRS Commissioner Danny Werfel. “We want taxpayers to claim these refunds, but time is running out for people who may have overlooked or forgotten about these refunds. There’s a May 17 deadline to file these returns so taxpayers should start soon to make sure they don’t miss out.”
They said that the average median refund is $932 for 2020. “This estimate does not include the Recovery Rebate Credit or other credits that may be applicable; the IRS has previously reminded those who may be entitled to the COVID-era Recovery Rebate Credit in 2020 that time is running out to file a tax return and claim their money,” they stated. Their data shows that Texas (93,400), California (88,200), Florida (53,200), and New York (51,400) have the biggest amount of people potentially eligible for these refunds.
IRS Unclaimed Tax Refunds
Taxpayers usually have three years to file and claim their tax refunds. If they don’t file within three years, the money becomes the property of the U.S. Treasury. For 2020 tax returns, people have a little more time than usual to file to claim their refunds. Typically, the normal filing deadline to claim old refunds falls around the April tax deadline, which is April 15 this year for 2023 tax returns. However, the three-year window for 2020 unfiled returns was postponed to May 17, 2024, due to the COVID-19 pandemic emergency.
In Feb. 2023, the organization issued Notice 2023-21, providing legal guidance on claims required by the postponed deadline.
If you still need to file a return, the IRS recommends taxpayers to request their W-2, 1098, 1099, or 5498 from their employer or bank or order a free wage and income transcript using the “Get Transcript Online,” tool at IRS.gov.
The IRS reminds taxpayers seeking a 2020 tax refund that their funds may be held if they have not filed tax returns for 2021 and 2022. In addition, any refund amount for 2020 will be applied to amounts still owed to the IRS or a state tax agency and “may be used to offset unpaid child support or other past due federal debts, such as student loans.”
Take a look at state-by-state estimates of people who may be due 2020 income tax refunds and more information here.
7 Easy Ways to Make Extra Money
Do you ever feel like you’re working hard but don’t have the money to show for it? It’s a common sentiment. Well, the good news is that today, there are some ways to make extra money right now that can really add up. Now, there’s no “easy” solution to making more cash. But, we’ve researched some ways that people are making extra money, and they’re simple.
Before we get into ways to make extra money, let’s start with saving money. NerdWallet.com has some really simple tips for saving cash. A big one is to prepare for grocery shopping. That’s so that you aren’t grabbing a bunch of stuff that you don’t need on a whim. “A little work before you go to the grocery store can go a long way toward helping you save money on groceries,” they state. Prepping also means that you can maximize any coupons that you find for items you’ll be purchasing or knowing about loyalty programs ahead of time. The big one is to not impulse by. I’ve done that so many times, when I but cinnamon rolls or something else that I don’t really want just because it looks good at the time.
Another savings tip from NerdWallet.com is to restrict online shopping. Boy, that’s a good one. It’s so easy to sit there on your phone, saving items that look cool in your online cart. Then, all you have to do is hit “order,” but often, you’re ordering a bunch of stuff that you don’t really need. They suggest that, “Instead of saving your billing information, opt to input your shipping address and credit card number each time you order. You’ll probably make fewer impulse purchases because of the extra work involved.” Good idea. Find more tips on saving money from NerdWallet.com here. Forbes has some good advice, too, in suggesting to do real meal prep. It helps avoid eating out too much, which can really add up.
Now, let’s get into easy ways to make extra money.
Kayla is the midday host on Detroit’s 105.1 The Bounce. She started her career in radio back in 2016 as an intern at another Detroit station and worked her way here. She's made stops in Knoxville, TN, Omaha, Ne and other places before returning to Detroit. She’s done almost everything in radio from promotions to web, creating content on social media, you name it.
She’s a true Michigander, born and raised. So, you can catch her camping or vacationing up north to exploring the downtown Detroit or maybe even catching a sports game. During her free time, Kayla enjoys watching movies, roller-skating, crafting, and music festivals. She and her husband together dip into many of the great things Michigan has to offer. Together they also like to travel.
A few hobbies of hers include wine and beer tastings, crafting, hiking, roller skating, movies, home improvement projects, gardening, and festivals. She’s always looking to take on more local events happening in the community.
She loves connecting with the community. When writing, Kayla covers topics including lifestyle, pop culture, trending stories, hacks, and urban culture.
