Final days to claim $1b in unclaimed funds before they expire – almost 1 million people are owed payments up to $1k | 0UD70JL | 2024-05-09 17:08:01
Final days to claim $1b in unclaimed funds before they expire – almost 1 million people are owed payments up to $1k | 0UD70JL | 2024-05-09 17:08:01
A MILLION Americans could be in for a big payday as the IRS has $1 billion in unclaimed funds that will expire in days.
This week, the IRS sent out a final reminder urging the public to check if they're owed cash before time runs out to claim it.
Taxpayers might never see a penny if they don't act fast.
The IRS says those who did not file their taxes in 2020 have until May 17 or any potential return they may have received will go unclaimed and be gone forever.
Typically, the filing deadline to claim old refunds lands more or less on the tax deadline of April 15.
However, due to the pandemic, the 2020 deadline was pushed to May to allow Americans some extra time.
More than $1 billion in 2020 refunds remain unclaimed, according to the IRS.
But some stand to lose more than just their 2020 tax refund. Many lower-income Americans could be eligible for the Earned Income Tax Credit For 2020.
The EITC is a refundable tax credit designed to provide financial assistance to low-income people and families by reducing the amount of tax owed.
The EITC can even end up as a refund, but only if the credit is more than what you owe in taxes.
The amount of the credit depends on several factors like income level, filing status, and the number of children.
For 2020, the EITC is worth as much as $6,660 for those with qualifying children.
<!-- End of Brightcove Player --> Essentially, it's a way to support hardworking Americans who might be facing financial challenges despite having a job.
But the potential money doesn't end just here. There is also money on the table for those who did not receive all three stimulus checks or got less money than others.
Starting in 2020, the US government issued stimulus checks to most taxpayers as a way of trying to help soften the financial impact of the economic shutdown during the pandemic.
But nearly two years after the last stimulus checks were issued, not everyone eligible for the payments has received them.
The Recovery Rebate Credit, meanwhile, was created to give those who are entitled to the stimulus checks but did not receive them for any reason an opportunity to receive the money they should've gotten.
In the three stimulus packages given to Americans in 2020 and 2021, individual taxpayers who earned $75,000 or less in 2018 or 2019, qualified for a total of $3,200 if single with $1,900 per dependent, and $6,400 if married with $2,500 per dependent.
However, for Americans earning more than $75,000 in either year, the payments were gradually phased out up to an income of $99,000, with anything above being ineligible for a check.
FILE NOW
The IRS advises starting to file sooner rather than later as the deadline is right around the corner.
The agency provided a breakdown of how much money is due to residents in each state on its website.
The average payment ranges from $800 to over $1,000.
The agency offers free resources to those who may need help or might just be overwhelmed with the process.
The IRS says taxpayers who are missing forms like their W-2, 1098, 1099, or 5498 can get copies from their employer or the bank.
Those who may have lost contact with a previous employer can order a free wage and income transcript at IRS.gov using the Get Transcript Online tool.
The IRS also offers an Interactive Tax Assistant, an online tool that provides answers to any of your specific tax questions specific to you and your situation.
Based on your answers, the virtual assistant can determine if you have to file a tax return, let you know if the type of income you have is taxable, help determine your filing status, let you know if you can claim a dependent, your eligibility to claim a credit, and even if you can deduct certain expenses.
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