Tax season for 2022 returns started this week, but 2020 returns are also making headlines.
The IRS recently informed Americans that they may still be owed money from that time period and provided instructions on how to claim it.
When To Receive Tax Return?
Everything is dependent on the American Rescue Plan Act, which was enacted as part of pandemic-era financial assistance.
According to the IRS, a portion of the plan permitted millions of people receiving unemployment benefits to deduct up to $10,200 from their payouts (or $20,400 for couples filing jointly) provided they earned less than $150,000 that year.
However, the timing was an issue because the one-time relief package was announced in March 2021 – after 76 million Americans had submitted their 2020 returns, according to USA Today.
The IRS performed automatic repairs for many of these people but has now stated that they are finished with that procedure. Anyone who believes they should have gotten the $10,200 tax deduction must now file an updated return to correct the error and get the money owed. The IRS has not stated how many people will be affected.
However, CPAs caution that the process of submitting a 1040-X amended return is not for the faint of heart (and cannot be done with the IRS Free File program). As a result, filing appropriately may demand the assistance of a licensed tax professional.
It may also take some time to obtain the refund (months in some situations), as an IRS agent will have to manually process the updated return. However, there could be some substantial money on the line that is worth the wait – USA Today reported that refunds have averaged roughly $1,232. In general, taxpayers have up to three years to file an amended return for it to be valid, therefore you should do so as soon as feasible for 2020.
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How To Find Out If IRS Owes You Money?
To determine whether the federal government has any unclaimed cash, you must identify the possible benefit or payment, the anticipated date of payment, and the suitable payment mechanism.
With this information, the institution in charge of certifying any payment owed should be able to assist you in determining the current status of the payment in question. The names and addresses of all government agencies are listed in the United States Government Manual.
The government entities listed below have databases where you can search for unclaimed money.
- Treasury Hunt: Unclaimed U.S. Securities and Payments
- HUD/FHA Mortgage Insurance Refunds
- Credit Union Unclaimed Shares
- National Association of Unclaimed Property Administrators
- (Individual State Unclaimed Asset Web Sites)
- U.S. Courts: Unclaimed Funds in Bankruptcy
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