More than $1 billion in unclaimed tax refunds is still on the table from the 2020 tax year. According to the Internal Revenue Service, nearly 940,000 people across the country have not filed their 2020 tax returns and have estimated refunds waiting for them.
But that money won't be waiting for long.
May 17 is the deadline to file 2020 taxes and claim any refund. The IRS estimates the average median refund is $932 nationally. In Arizona, 25,400 residents have not filed their 2020 tax returns. If you're one of them, that means you could have money waiting for you!
By law, taxpayers usually have three years to file taxes and claim any refunds. After that time, the money becomes the property of the U.S. Treasury. However, the deadline to file returns for the 2020 tax year was pushed back due to COVID.
Before you file your 2020 taxes and claim any refund due, there are a few things you need to know:
- Your taxes need to be up to date. If you haven't filed your 2021 and 2022 taxes, the IRS may hold your 2020 refund.
- Your refund may be less if you have any outstanding tax bills. Any refund amount for a 2020 tax refund will be applied to amounts still owed to the IRs or a state tax agency or may be used to offset unpaid child support or other past-due federal debts.
- You need documentation. It's been a few years since 2020. If you don't have access to your older tax documents and can't receive copies from an employer, don't worry. There are options. You can order a free wage and income transcript at IRS.gov using theGet Transcript Online tool. Another option is for people to file Form 4506-T with the IRS to request a "wage and income" transcript. That transcript shows data from information returns received by the IRS and the information can be used to file a tax return.
It's not just taxes where you may be leaving money on the table. You may have unclaimed property with the state.
Arizona has more than $2 billion worth of unclaimed property waiting for its owners - things like forgotten security deposits, old checks, or safe deposit boxes.
Check your name online with the state to see if you have unclaimed property waiting for you.
