How to file 2020 tax return before refund deadline arrives
More than $1 billion in unclaimed tax refunds is set to expire in a few weeks, and a good chunk is up for grabs for Pennsylvanians.
Roughly 940,000 people across the U.S. are eligible for unclaimed refunds for the 2020 tax year with a median return of $932, the Internal Revenue Service says. Of that sum, $43.4 million belongs to an estimated 38,600 Pennsylvania taxpayers, with a median return of $1,031.
One of these valuable sums may belong to you if you have not filed your 2020 tax return. If you still hope to see that money come your way, here’s what you need to do before time runs out.
WHEN IS THE DEADLINE TO CLAIM A 2020 TAX REFUND?
Under U.S. law, taxpayers usually have three years to file and claim tax refunds before the U.S. Treasury assumes ownernot ship. Complications from the COVID-19 pandemic postponed the three-year filing deadline for 2020’s returns to May 17, 2024.
“People faced extremely unusual situations during the pandemic, which may have led some people to forget about a potential refund on their 2020 tax returns,” IRS Commissioner Danny Werfel said in a March 25 statement. “People may have just overlooked these, including students, part-time workers and others. Some people may not realize they may be owed a refund. We encourage people to review their files and start gathering records now, so they don’t run the risk of missing the May deadline.”
In addition to the value of these unclaimed refunds, some taxpayers — including low- and moderate-income workers — are eligible for the Earned Income Tax Credit. This refundable tax credit is valued at up to $6,660 for the 2020 tax period, but that could be lost if your refund is claimed before May’s deadline.
HOW CAN I FILE MY 2020 TAX RETURN?
It’s been nearly half a decade since the 2020 tax season was likely at the front of your mind. Although it may be challenging to round up the necessary information, the IRS offers a few tips to help taxpayers prepare to file outstanding returns.
First and foremost, assess your tax filings and check if you have addressed your more recent federal returns. The IRS may withhold 2020 tax refund checks if taxpayers have not filed tax returns for 2021 and 2022 yet. Unclaimed refunds may also be used to cover any lingering debts owed to the IRS or state tax agencies, as well as outstanding costs like student loans, federal debts or unpaid child support.
Once you are ready to round up your documents, visit irs.gov/forms-instructions or call 800-829-3676 to find forms for the current and prior tax years. The IRS says you can also try to locate critical filing information through the following methods:
Request copies of key documents
through your employer, bank or other payers. You will likely need copies of important tax documents and forms, including W-2s, 1098s, 1099s and 5498s for the 2020, 2021 and 2022 tax years.
Use the Get Transcript Online tool
to order a free wage and income transcript from the IRS. The agency says this is “by far” the quickest and easiest option for most taxpayers looking for missing forms from their employers and other payers. Visit irs.gov/individuals/ get-transcript to find the tool.
If all else fails,
request a “wage and income transcript”
by filing Form 4506-T with the IRS. This document shows data from information returns the IRS already received, including W-2s, 1098s and 1099s and IRA contributions. Taxpayers can use this transcript’s information to file their tax returns, but note these written requests can take weeks to process. The IRS strongly urges taxpayers to try other methods first.
WHICH STATE’S TAXPAYERS CAN PROFIT THE MOST FROM UNCLAIMED 2020 TAX REFUNDS?
No state has more potential refunds waiting to be claimed than Texas. The Lone Star State, which is the second-most populous in the U.S., has roughly 93,400 taxpayers who could claim up to about $107.1 million in potential tax refunds, the IRS estimates.
California follows closely behind with an estimated 88,200 taxpayers eligible to claim roughly $94.23 million, the IRS says. Pennsylvania’s median potential refund for the outstanding 2020 tax returns ($1,031) leads the nation, while New York ($1,029) and Maryland ($991) follow closely behind.