IRS says PA taxpayers could claim $57.6M in expiring tax refunds. See if you’re eligible

Matt DiSanto
·3 min read

While this year’s Tax Day has already passed, the Internal Revenue Service says millions of Americans still have a chance to secure nearly $1.5 billion in unclaimed tax refunds.

In a statement April 12, the IRS said nearly 1.5 million people across the U.S. are eligible for unclaimed refunds for the 2019 tax year with a median value of $863. Locally, roughly 56,000 Pennsylvanians could claim part of an estimated $57.6 million in unclaimed refunds if they file their outstanding returns before it’s too late.

According to U.S. law, taxpayers traditionally have up to three years to file and claim a refund. The U.S. Treasury assumes ownership of any unclaimed refund once that window expires.

Tax day is approaching fast. Here’s how Pennsylvanians can request an extension

Filing deadlines traditionally fall around April’s Tax Day, but 2019’s three-year window for outstanding returns was extended to July 17 to help accommodate complications spurred by the coronavirus pandemic.

“With the pandemic taking place when the 2019 tax returns were originally due, people faced extremely unusual situations. People may have simply forgotten about tax refunds with the deadline that year postponed all the way into July,” IRS Commissioner Danny Werfel said in a statement. “We frequently see students, part-time workers and others with little income overlook filing a tax return and never realize they may be owed a refund. We encourage people to review their records and start gathering records now, so they don’t run the risk of missing the July deadline.”

Missing out on the extended filing period could risk the loss of more than just a tax refund, the IRS says. Low- and moderate-income workers are often eligible for the Earned Income Tax Credit (EITC), a refundable tax credit that could be worth as much as $6,557 for the 2019 filing period.

To secure an unclaimed 2019 refund, you need to make sure your more recent returns are addressed, too. The IRS may withhold a 2019 tax refund check if a taxpayer has not filed tax returns for 2020 and 2021 yet. An unclaimed refund could also be applied to any debts owed to the IRS or a state tax agency, as well as any outstanding costs related to unpaid child support, federal debts or student loans.

Getting ready to file taxes in PA? Don’t forget the sometimes-overlooked local return

Steps for filing a 2019 tax return

While it may feel like yesterday, 2019 is hardly visible in the rear-view mirror anymore. To help tie up loose ends, the IRS offers a few tips to help taxpayers gather the information they need to file outstanding 2019 tax returns.

You’ll need current and prior year tax forms, including documents for the 2019 tax year, to file properly. These are often available online at irs.gov/forms-instructions or by calling 800-829-3676.

You can also try to secure critical filing information through these methods, the IRS says:

  • Request copies of key documents: The IRS advises taxpayers to ask their employer, bank or other payers for copies of important tax documents and forms, including W-2s, 1098s, 1099s and 5498s for 2019, 2020 or 2021.

  • Get Transcript Online tool: The IRS offers an online tool that can help taxpayers who are unable to secure missing forms from their employers or other payers. Visit irs.gov/individuals/get-transcript to use the IRS’s Get Transcript Online tool to order a free wage and income transcript. The IRS says this is “by far” the quickest and easiest option for most taxpayers.

  • Request a transcript: If all else fails, you can always file Form 4506-T with the IRS to request a “wage and income transcript,” the agency says. These documents show data from information returns that were previously received by the IRS, including key tax forms and IRA contribution information. If you choose this option, plan ahead. Written requests can take several weeks to process and should not be a preferable first option, the IRS warns.