IRS Reminder: Act By May 17 to Claim Refunds for 2020 Tax Year

The IRS issued an announcement last week reminding taxpayers that they only have until May 17 of 2024 to file 2020 tax returns and claim their refunds. The IRS estimates that about $1 billion in refunds remain unclaimed because people have yet to file their 2020 tax returns. Taxpayers should be reminded that they have more time because the deadline for filing 2020 returns was initially extended to May 17, 2021 due to the COVID-19 pandemic. Taxpayers should also understand that they may stand to gain more than a simple refund of taxes that were withheld from their paychecks during the 2020 tax year (when many taxpayers were unemployed or underemployed for pandemic-related reasons). The earned income tax credit and recovery refund credit can increase the amount of money the IRS may owe taxpayers. Taxpayers should also remember that many credits were expanded during the pandemic era--so that they may qualify even if they wouldn't typically qualify for these tax benefits. Taxpayers can request copies of the documents they need from employers, banks or other payers. They can also order a wage and income transcript from the IRS at IRS.gov. For more information on the pandemic-era child tax credit expansion, visit Tax Facts Online. : Q 760.