The IRS encourages taxpayers to file 2020 tax refunds by May 17 to claim up to $1 billion, including Earned Income Tax Credit and Recovery Rebate Credit, with Texas, California, and Florida leading in estimated amounts.
Earned Income Tax Credit and Recovery Rebate Credit Worth Up to $6,660
Millions of American taxpayers have until May 17 to claim their share of an estimated $1 billion in refunds per the IRS. This deadline is crucial for those who didn’t file 2020 returns offering a penalty-free chance to collect refunds. With the three-year window closing and it’s the last opportunity to retrieve unclaimed funds and credits, reports News Channel 8.
For many individuals nationwide neglecting to file their tax returns for 2020 not only means missing potential refunds but also forfeiting valuable tax credits. The Earned Income Tax Credit which can amount to as much as $6,660 for lower-income workers with qualifying families and the Recovery Rebate Credit designed for those who did not receive stimulus checks during 2020 and 2021 are among the credits that may go unclaimed if taxpayers do not act quickly.
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IRS Urges Prompt Action as Taxpayers Race to Claim $1 Billion in Refunds Before May 17
As taxpayers rush to meet the looming deadline, the IRS stresses the importance of initiating the filing process promptly. Gathering necessary documents from employers, banks or other payers can be time-consuming, emphasizing the urgency for taxpayers to begin the process as soon as possible. The IRS offers assistance through its website where taxpayers can access free wage and income transcripts to facilitate the filing process.
The breakdown of estimated refunds owed by state sheds light on the extent of unclaimed funds across the country. Texas leads the tally with an estimated $107,130,200, followed closely by California with $94,226,300 and Florida with $58,210,500. The figures underscore the widespread impact of unclaimed refunds affecting individuals and families in every corner of the nation.
Across all states and districts a staggering total of 938,800 individuals are estimated to be owed refunds with a median potential refund of $932 per individual. The cumulative potential refunds amount to an impressive $1,037,161,300, highlighting the significant sum of unclaimed funds awaiting taxpayers who act before the impending deadline.
Furthermore, taxpayers are urged to seize this final opportunity to claim their refunds and tax credits before the May 17 deadline. Whether it’s a much-needed financial boost or the chance to rectify past oversights filing before the cutoff date ensures that taxpayers can access the funds rightfully owed to them.
