Don't Miss Out: How to Reclaim Unclaimed Tax Refunds from the IRS

Mary Singleton
Published Aug 9, 2024


Did you know that the IRS could owe you money from your 2020 tax return, including for the 2020 Recovery Rebate Credit?

Over $1 billion in unclaimed refunds are waiting to be retrieved by almost 940,000 taxpayers. The average refund amount sits at $932, but time is running out to claim what’s rightfully yours.

According to the IRS, unclaimed tax refunds are typically held for three years before being transferred to the US Treasury. However, with the tax deadline extended to May 17, 2021, due to the financial strain of the COVID-19 pandemic, individuals now have until May 17, 2024, to file their 2020 tax return and retrieve any unclaimed refunds.

It should be noted that prior-year tax returns cannot be filed electronically, requiring taxpayers to submit their returns via mail to the relevant regional IRS office.

It is crucial for taxpayers to utilize the IRS Form 1040 Recovery Rebate Credit Worksheet to calculate their recovery rebate credits and determine if they are eligible for additional refunds.

This process may also require obtaining copies of any missing tax documents, such as W-2s, 1098s, or 1099s from 2020, from the relevant employers or financial institutions.

If any refunds have been offset to cover tax debts, child support, or other federal obligations, individuals are encouraged to reach out to the respective entities for clarification on the situation.

Tax refund offsets are managed by different agencies, depending on the nature of the debts involved.

Time is of the essence to claim these unutilized funds and ensure that they are put to good use. Don't miss out on what could potentially be owed to you by the IRS. Act promptly to secure your rightful refunds and avoid missing the opportunity to reclaim these vital financial resources.

Related Articles

The State By State Guide to Unclaimed Assets...

Unclaimed assets can be a hidden treasure waiting for you. The challenge is each state in the United States operates an Unclaimed Property Program to safeguard these assets until they can be returned to their owners. ...

Do You Have Unclaimed Funds? Here's How To Find Out...

Everyone can relate to having a never-ending list of unfinished tasks. Finding out if you have unclaimed funds might be one of those things. It's a relief to learn that finding out if you have unclaimed fu...

Unclaimed Money: Here's How to Find and Reclaim What's Been Lost...

  When you think of lost money, the first thing that probably comes to mind is a treasure map and X marking the spot. Unfortunately, finding unclaimed money in real life is a bit more complicated ...

Ways You Can Use Unclaimed Funds for Personal Financial Wellness or Business Development...

Millions of dollars in unclaimed funds are held in government coffers across the US. Yet, some people remain unaware that they have money waiting for them, while others simply don...

FAQs About Unclaimed Assets and Money...

Being a savvy consumer means being in the know about unclaimed assets and money. You might have questions about how to find and access this money – but don’t worry; we’ve got you covered! Here are some FAQs about ...

The Government Urges Americans to Claim Their Money...

A couple of weeks ago, news broke about the federal government releasing information about millions of Americans who have yet to claim their stimulus checks. Most people just believed that this was a sitting adminis...