IRS has $1.5 billion in unclaimed refunds. Here’s how to find out if any of it is yours
The Internal Revenue Service is issuing a final reminder to the nearly 1.5 million taxpayers who have yet to claim their 2019 tax refund: Time is running out.
“The final window closes on July 17 for taxpayers who didn’t file a tax return for 2019 to claim their refund,” IRS Commissioner Danny Werfel said in a June 30 news release. “The IRS continues to urge people who may have overlooked filing during the pandemic to act quickly before they lose their final chance to claim a potentially substantial refund.”
Not all taxpayers who need to file a return will be due a refund, but the IRS encourages all taxpayers to file.
If you did not file a tax return for the 2019 tax year, here’s what you need to know about claiming your funds in time.
How much money are you owed?
There are about $1.5 billion worth of unclaimed funds remaining, according to the IRS. Any funds that are not claimed by the July 17 deadline will be turned over to the U.S. Treasury.
The IRS estimates that the average median refund for tax year 2019 is $893. For low- and moderate-income workers though, refunds might be bigger.
Workers whose 2019 income qualifies for the Earned Income Tax Credit might be eligible for up to $6,557, according to the IRS.
If you have not filed a return for 2020 and 2021, the IRS can withhold your 2019 check.
The IRS also said that refunds will be applied to any outstanding payments owed to the IRS or other state tax agency. Refunds may also be put towards unpaid child support payments or past due federal debts.
How to file your tax refund
Although 2019 taxes were due more than three years ago, there are still several ways to get the necessary information to file your tax return. Here’s what the IRS suggests:
Request copies of key documents — such as your W-2, 1098, 1099 or 5498 — from your employer, bank or other payers for the years 2019, 2020 or 2021.
If you can’t get documents from your employer or other payer, you can visit the IRS’ Get Transcript Online tool to order a free wage and income transcript.
Taxpayers can also use a Form 4506-T to request a wage and income transcript. However, these written orders can take several weeks to process and may not be completed ahead of the July 17 deadline.
The deadline to file 2019 tax returns was extended because of the COVID-19 pandemic. Typically, taxpayers have three years to file their returns.
The IRS also listed a state-by-state breakdown of the the possible money out there: estimated number of individuals, the median potential refund and the total potential refunds available for each state. Taxpayers can view those figures here.
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