Millions of taxpayers haven’t filed their 2019 tax returns, leaving the IRS with $1.5 billion in unclaimed Tax refunds. In other words, you may be owed money.
Because the 2019 tax returns were due in 2020, during the COVID-19 pandemic, IRS Commissioner Danny Werfel explained in a statement that many people may have overlooked or forgotten about these refunds. Werfel added that the IRS advises taxpayers to begin immediately to avoid missing out.
$1.5 Billion Unclaimed Tax Refunds Are You Eligible?
Generally, taxpayers have three years to file their federal tax return and, if applicable, claim any tax refunds. After three years, unclaimed refunds become the property of the U.S. Treasury Department.
Due to the pandemic, the three-year period for filing federal tax returns and claiming refunds has been extended for tax returns for 2019.
Therefore, the due date for 2019 tax returns that would have normally been filed in April 2020 has been extended to July 17, 2023. This means that individuals who have not yet filed their 2019 tax returns have approximately three months to do so before their refunds are voided.
Average Refund Amount of $893
The average median unclaimed refund amount for 2019 according to the IRS is $893. This means that roughly half of the refunds are greater than the specified amount, while the other half are lower. Commissioner Werfel stated in a statement, Students, part-time workers, and others with low income often fail to file a tax return and are unaware that they may be eligible for a refund.
However, the IRS has created state-by-state estimates of the number of potential refund recipients. This data also includes the median potential refund and total potential refund for each state.
- In California, for instance, close to 145,000 individuals have unclaimed IRS refunds with a potential median amount of $856. There may be more than $141 million in unclaimed funds.
- Massachusetts, at $966, New Hampshire, at $974, and West Virginia, at $959, are states with relatively high estimated potential median refund amounts.
- In West Virginia, for instance, the IRS estimates that approximately 6,500 individuals are eligible for refunds, totaling approximately $7 million.
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Unclaimed IRS Refunds: What Should You Do?
If you believe you may be eligible for an unclaimed IRS refund, you must review and collect the necessary documents to file your 2019 federal income tax return by July 31, 2023.
This may appear daunting because nearly three years have passed, but the IRS provides options for requesting documents and transcripts that may be required for filing.
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