Don't Miss Out: How to Reclaim Unclaimed Tax Refunds from the IRS

Did you know that the IRS could owe you money from your 2020 tax return, including for the 2020 Recovery Rebate Credit?

Over $1 billion in unclaimed refunds are waiting to be retrieved by almost 940,000 taxpayers. The average refund amount sits at $932, but time is running out to claim what’s rightfully yours.

According to the IRS, unclaimed tax refunds are typically held for three years before being transferred to the US Treasury. However, with the tax deadline extended to May 17, 2021, due to the financial strain of the COVID-19 pandemic, individuals now have until May 17, 2024, to file their 2020 tax return and retrieve any unclaimed refunds.

It should be noted that prior-year tax returns cannot be filed electronically, requiring taxpayers to submit their returns via mail to the relevant regional IRS office.

It is crucial for taxpayers to utilize the IRS Form 1040 Recovery Rebate Credit Worksheet to calculate their recovery rebate credits and determine if they are eligible for additional refunds.

This process may also require obtaining copies of any missing tax documents, such as W-2s, 1098s, or 1099s from 2020, from the relevant employers or financial institutions.

If any refunds have been offset to cover tax debts, child support, or other federal obligations, individuals are encouraged to reach out to the respective entities for clarification on the situation.

Tax refund offsets are managed by different agencies, depending on the nature of the debts involved.

Time is of the essence to claim these unutilized funds and ensure that they are put to good use. Don't miss out on what could potentially be owed to you by the IRS. Act promptly to secure your rightful refunds and avoid missing the opportunity to reclaim these vital financial resources.