The IRS announced that nearly 1.5 million Americans have unclaimed tax refunds for the 2019 tax year. Here are the recipients and the deadline for claiming it.
Looking for some excess change by rummaging through the sofa? You may be able to acquire considerably more than a handful of coins.
Who Will Receive IRS Tax Refund?
The IRS estimates that nearly $1.5 billion in refunds remain unclaimed due to the fact that individuals have not filed their 2019 tax returns.
For that year, the agency reports that the median refund is $893. The filing deadline for tax returns for 2019 is July 17, 2023. This reflects the three-year statute of limitations as the COVID-19 pandemic moved the filing deadline for 2019 back three months.
The filing deadline for 2019 tax returns occurred during the pandemic, and many individuals may have neglected or forgotten about their refunds. Time is running out for taxpayers to file for these refunds. The deadline for filing tax returns is July 17, 2018. IRS Commissioner Danny Werfel advised taxpayers to begin as soon as possible to avoid missing out.
Read more: Tesla CEO Elon Musk Launches X.AI, A New Artificial Intelligence Venture
The Three-Year Rule
Generally, the law allows taxpayers three years to submit and claim tax refunds. If you fail to submit a tax return within three years, the money becomes the property of the United States Treasury.
For 2019 tax returns, however, taxpayers have more time than usual to file and claim refunds. Due to the emergency triggered by the COVID-19 pandemic, the three-year window for unfiled 2019 tax returns has been extended from April 18 to July 17, 2023.
The IRS projects that the median refund for 2019 will be $893. This indicates that half of the refunds are greater than $893 and the other half is less than this amount.
Low- and moderate-income working taxpayers may be eligible for the Earned Income Tax Credit in addition to their refunds (EITC). In 2019, the credit was worth $6,557.
On the other hand, it is important to note that refunds for 2019 may be withheld from taxpayers who have not filed their 2020 and 2021 tax returns.
Read more: Paying For College With 529 Savings Plans: A Step-By-Step Guide To Withdrawals