In April, the IRS reported that nearly 1.5 million Americans were still eligible for a tax refund of up to $900. The IRS estimates that approximately $1.5 billion in refunds remain unclaimed because 2019 tax returns have not been filed. The IRS reports that the average tax refund is $893.
To obtain this money, taxpayers must submit their tax returns for fiscal year 2019 by July 17. IRS Commissioner Danny Werfel acknowledged that many filers missed the deadline due to the covid-19 pandemic outbreak, adding that the agency wants “taxpayers to obtain these refunds as soon as possible.”
Can I Still Receive Unclaimed Tax Refunds?
Generally, the law allows taxpayers three years to submit and claim tax refunds. If they do not file a tax return within three years, the funds revert to the US Treasury Department.
For 2019 tax returns, however, taxpayers have had more time than usual to file and claim refunds. Due to the COVID-19 pandemic emergency, the three-year period for unfiled 2019 tax returns has been extended until July 17, 2023.
This means that taxpayers who have not yet filed their tax returns for 2019 have until that date to do so. The positive news is that some individuals may be eligible for close to $900.
When filing your 2019 tax return, low- and moderate-income working taxpayers may be eligible for the Earned Income Tax Credit (EITC). The credit for the 2019 tax year was $6,557.
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How to Claim a $900 Tax Refund?
The IRS estimates that nearly $1.5 billion in refunds remain unclaimed, according to AS. However, how would one qualify for that $900 refund? One need only file their 2019 tax returns in order to qualify. If you want the additional $900, you must act quickly.
Consequently, you may not have much time remaining to submit your taxes to the IRS. The reason for this extended deadline is, of course, the COVID-19 pandemic, as lockdowns complicated the submission of tax returns for the 2019 tax year.
The tax returns for 2019 were expected to be lodged in 2020. However, due to the pandemic, the IRS extended the deadline for filing taxes and claiming refunds. This allowed taxpayers a three-year window to submit their tax returns, though that window will shortly close.
According to Yahoo! Finance, any unclaimed tax refunds after the deadline would become the property of the US Treasury Department. Many of those eligible for these refunds may be low- and moderate-income employees who qualified for the earned-income tax credit, which could be worth up to $6,557 for 2019. This means that individuals can receive a refund even if they do not owe any tax due to their modest income.
The IRS bases refunds on income and family size, so taxpayers with three or more children could conceivably receive a larger refund. However, it should be noted that those who are eligible will not receive their reimbursements quickly, as the agency typically takes longer to process paper applications.
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