Unlocking Tax Secrets: Unclaimed Refunds Await – Here's How to Claim Yours from 2020

Did you know there's a chance the IRS owes you money? Surprising, right? 

Recent statistics reveal a startling fact: many taxpayers might be entitled to refunds of $1,000 or more from the IRS. 

This unexpected revelation has piqued the interest of many taxpayers, sparking curiosity about how and why they could be owed money by the very entity they typically pay.

The potential windfall stems from unclaimed tax refunds from previous years. 

The IRS estimates that there are millions of dollars in unclaimed refunds waiting to be collected. 

In 2020 alone, approximately 1.3 million taxpayers failed to file their tax returns, missing out on an average refund of $865 each. That's a substantial sum of money left untouched.

So, who exactly is eligible for these unclaimed refunds? 

Generally, individuals who didn't file a tax return for a particular year but had taxes withheld from their pay or made estimated tax payments may be entitled to a refund if they qualify. 

This includes individuals who may have had too little income to require filing a tax return but are still eligible for certain tax credits, such as the Earned Income Tax Credit (EITC) or the Additional Child Tax Credit.

The process for claiming these refunds is relatively straightforward. 

Taxpayers must file a return for the year in question by the applicable deadline, which is generally three years from the original due date of the return. 

For example, for unclaimed refunds from the 2018 tax year, the deadline for filing a return and claiming a refund is typically April 15, 2022.

Filing a past-due return doesn't necessarily mean owing additional taxes. In fact, for many taxpayers, it could result in a much-needed financial boost. 

For those struggling financially, especially in the wake of the COVID-19 pandemic, these unclaimed refunds could provide a welcome source of relief.

To determine if you're owed a refund:

• Obtain copies of documents from your employer, bank, and other payers by requesting Forms W-2, 1098, 1099, or 5498 for the tax years 2020, 2021, or 2022.
• Utilize the Get Transcript Online Tool on IRS.gov, the most efficient method for obtaining any missing employment information, enabling you to order a complimentary wage and income transcript swiftly.
• Request a wage and income transcript to access data from information returns received by the IRS, such as Forms W-2, 1099, 1098, Form 5498, and IRA contribution information. Submit Form 4506-T to the IRS to request the transcript, allowing ample time for processing, as written requests may require several weeks, according to IRS guidelines.

Additionally, utilizing tax preparation software or seeking assistance from a tax professional can help ensure that your return is filed accurately and timely.

If you haven't filed your tax returns for previous years, you could be missing out on a substantial refund from the IRS. 

With millions of dollars in unclaimed refunds waiting to be collected, it's worth taking the time to investigate whether you're entitled to a piece of the pie. 

Don't miss out on valuable refunds—explore our recommended reads and learn how to claim what's rightfully yours!

• Don't Miss Out: How To Reclaim Unclaimed Tax Refunds From The IRS
• Redeem Your Unclaimed Funds From 2023 Before They Slip Away
• Unclaimed Assets: How They Accumulate Over Time