LAS VEGAS (KTNV) — We are exactly two weeks from this year’s tax deadline, but aside from filing 2023 taxes, the IRS reminds taxpayers that over $1 billion in unclaimed refunds from 2020 remain. Those who missed filing that year can still claim a refund.
The Internal Revenue Service estimates that 940,000 individuals have yet to file their 2020 tax returns, leaving $1 billion in refunds untouched. In Nevada alone, over 10,000 people are part of this group. Typically, taxpayers have up to three years to claim a tax refund. However, because of the COVID-19 emergency, the deadline for 2020 tax returns has been extended further to May 17.
Beyond the refund amounts, many low—and moderate-income workers may qualify for the Earned Income Tax Credit, worth thousands of dollars depending on income and family size.
Tax expert Mark Steber said the average refund of $1 billion for a reported 940,000 people is about $900 per person. Still, he believes the total amount of unclaimed refunds might be even higher than that figure because of taxpayer’s job circumstances during the pandemic.
“This one million people and this $1 billion is probably a really conservative estimate of the amount of money that is going to be foregone on May 17 and not collected,” he said. “There’s a whole lot more that goes in there. If you don’t act and it is not abundantly clear that this is not you, you probably should ask some questions or see your favorite tax professional and double-check.”
According to Steber, filing a 2020 tax return is straightforward. While individuals can file on their own, seeking advice from a professional is recommended. Those missing important documents should ask their employers for copies or use IRS resources like getting transcripts online. Also, taxpayers can submit form 4506-T to request a wage and income transcript from the IRS.
Current and past tax forms, including those for the 2020 tax year, along with instructions, are available on IRS.gov. The deadline to file 2023 taxes is Monday, April 15, but to submit a 2020 tax refund, that deadline is May 17.
To find more information about the $1 billion in refunds for tax year 2020, click here.
