You may be eligible for an extra tax refund from the IRS for your 2021 tax return, which could include a payment if you met the requirements for the 2020 Recovery Rebate Credit.
There may be a possibility that the IRS is holding onto some money for individuals who didn't file taxes in 2021 due to various reasons such as not thinking they qualified, forgetting, or avoiding the stress of filing.
The IRS Owes Average of $932 to 940,000 Taxpayers
The average amount of unpaid tax refunds is $932, a significant sum that taxpayers should not overlook. It is important to act promptly as the IRS will not hold onto these funds indefinitely.
According to the IRS, over $1 billion in unclaimed tax refunds is being held for nearly 940,000 taxpayers from 2020. Time is running out for taxpayers who have yet to claim their 2020 refund.
According to regulations, the IRS retains unclaimed tax refunds for three years. Typically, the funds are transferred to the US Treasury once the deadline for claiming your refund has expired.
Typically, individuals have a period of three years after the end of the tax season to claim their refund. However, there are some changes to this rule for the current year. In 2021, the deadline for tax filing was extended until May 17. This extension allows individuals to claim any unclaimed funds until May 17, 2024.
How to File Tax Return Online?
Use online tax software to efficiently complete your tax return and maximize your chances of receiving a tax refund for the year 2021.
Additionally, you have the convenience of using your phone to scan and upload your essential tax documents. However, it's important to note that electronic filing for 2020 returns is currently unavailable.
To complete this process, it is necessary to physically print out your 2020 tax return for 2021 and send it via mail to the designated regional IRS office based on your location, CNET reported.
Out of the 90.3 million individual tax returns received by the IRS through March 29, approximately 60.9 claimed tax refunds, which is roughly two-thirds of the total.
According to USA Today, the average refund amount of $3,050 showed a slight increase compared to $2,910 at this time last year.
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