Internal Revenue Service - Information Release
IR-2024-80
Time running out to claim $1 billion in refunds for tax year 2020, taxpayers face May 17 deadline     
March 25, 2024 
   
   
   
Media Relations Office
Washington, D.C.
www.IRS.gov/newsroom   
Media Contact: 202.317.4000   
Public Contact: 800.829.1040
   
 Time running out to claim $1 billion in refunds for tax year 2020,    
 taxpayers face May 17 deadline    
     
IR-2024-80, Mar. 25, 2024   
   
WASHINGTON The Internal Revenue Service announced today that almost 940,000 people across the nation have unclaimed refunds for tax year 2020 but face a May 17 deadline to submit their tax returns.   
     
The IRS estimates more than $1 billion in refunds remain unclaimed because people haven't filed their 2020 tax returns yet. The average median refund is $932 for 2020, and the state-by-state table below shows how many people are potentially eligible for these refunds in each state along with the median average refund by state.   
     
"There's money remaining on the table for hundreds of thousands of people who haven't filed 2020 tax returns," said IRS Commissioner Danny Werfel. "We want taxpayers to claim these refunds, but time is running out for people who may have overlooked or forgotten about these refunds. There's a May 17 deadline to file these returns so taxpayers should start soon to make sure they don't miss out."   
     
Under the law, taxpayers usually have three years to file and claim their tax refunds. If they don't file within three years, the money becomes the property of the U.S. Treasury.   
     
But for 2020 tax returns, people have a little more time than usual to file to claim their refunds. Typically, the normal filing deadline to claim old refunds falls around the April tax deadline, which is April 15 this year for 2023 tax returns. But the three-year window for 2020 unfiled returns was postponed to May 17, 2024, due to the COVID-19 pandemic emergency. The IRS issued Notice 2023-21   on Feb. 27, 2023, providing legal guidance on claims required by the postponed deadline.   
     
The IRS estimates the midpoint for the individual refund amounts for 2020 to be $932 -- that is, half of the refunds are more than $932 and half are less. This estimate does not include the Recovery Rebate Credit or other credits that may be applicable; the IRS has previously reminded  those who may be entitled to the COVID-era Recovery Rebate Credit in 2020 that time is running out to file a tax return and claim their money.   
     
"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," Werfel said. "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."   
     
By missing out on filing a tax return, people stand to lose more than just their refund of taxes withheld or paid during 2020. Many low- and moderate-income workers may be eligible for the Earned Income Tax Credit (EITC). For 2020, the EITC was worth as much as $6,660 for taxpayers with qualifying children. The EITC helps individuals and families whose incomes are below certain thresholds. The thresholds for 2020 were:   
     
- $50,594 ($56,844 if married filing jointly) for those with three or more qualifying children;   
- $47,440 ($53,330 if married filing jointly) for people with two qualifying children;   
- $41,756 ($47,646 if married filing jointly) for those with one qualifying child, and;   
- $15,820 ($21,710 if married filing jointly) for people without qualifying children.   
     
The IRS reminds taxpayers seeking a 2020 tax refund that their funds may be held if they have not filed tax returns for 2021 and 2022. In addition, any refund amount for 2020 will be applied to amounts still owed to the IRS or a state tax agency and may be used to offset unpaid child support or other past due federal debts, such as student loans.   
     
Current and prior year tax forms (such as the tax year 2020 Forms 1040 and 1040-SR) and instructions are available on the IRS.gov Forms & Instructions  page or by calling toll-free 800-TAX-FORM  (800-829-3676).   
     
 High-income non-filers: IRS compliance letters coming      
     
The IRS also announced Feb. 29   a new effort  focused on high-income taxpayers who have failed to file federal income tax returns in more than 125,000 instances since 2017 with taxes being owed in many of those cases.   
     
The new initiative, made possible by Inflation Reduction Act funding, began with IRS compliance letters going out in February on more than 125,000 cases where tax returns haven't been filed since 2017. The mailings include more than 25,000 to those with more than $1 million in income, and over 100,000 to people with incomes between $400,000 and $1 million between tax years 2017 and 2021.   
     
 Need to file a 2020 tax return? Several options to get key documents    
     
Although it's been a few years since 2020, the IRS reminds taxpayers there are ways they can still gather the information they need to file this tax return. But people should start early to make sure they have enough time to file before the May deadline for 2020 refunds. Here are some options:   
     
-  Request copies of key documents: Taxpayers who are missing Forms W-2, 1098, 1099 or 5498 for the years, 2020, 2021 or 2022 can request copies from their employer, bank or other payers.   
     
-  Use Get Transcript Online at IRS.gov.    Taxpayers who are unable to get those missing forms from their employer or other payers can order a free wage and income transcript at IRS.gov using the Get Transcript Online  tool. For many taxpayers, this is by far the quickest and easiest option.   
     
-  Request a transcript.    Another option is for people to file Form 4506-T  with the IRS to request a "wage and income transcript." A wage and income transcript shows data from information returns received by the IRS, such as Forms W-2, 1099, 1098, Form 5498 and IRA contribution information. Taxpayers can use the information from the transcript to file their tax return. But plan ahead - these written requests can take several weeks; people are strongly urged to try the other options first.   
     
 State-by-state estimates of individuals who may be due 2020 income tax refunds    
     
Based on tax information currently available, the IRS estimated how many people in each state may be entitled to a tax refund. The actual refund amount will vary based on a household's tax situation.   
     
 State or    
 district    
 Estimated    
 number of individuals    
 Median    
 potential refund    
 Total    
 potential refunds   *     
Alabama   
15,200   
$926   
$16,839,800   
Alaska   
3,700   
$931   
$4,335,300   
Arizona   
25,400   
$871   
$26,939,600   
Arkansas   
8,700   
$923   
$9,392,600   
California   
88,200   
$835   
$94,226,300   
Colorado   
18,500   
$894   
$20,109,900   
Connecticut   
9,800   
$978   
$11,343,600   
Delaware   
3,600   
$945   
$4,156,500   
District of Columbia   
2,900   
$968   
$3,503,800   
Florida   
53,200   
$891   
$58,210,500   
Georgia   
36,400   
$900   
$39,175,600   
Hawaii   
5,200   
$979   
$5,972,600   
Idaho   
4,500   
$761   
$4,369,600   
Illinois   
36,200   
$956   
$40,608,000   
Indiana   
19,200   
$922   
$20,893,000   
Iowa   
9,600   
$953   
$10,601,700   
Kansas   
8,700   
$900   
$9,285,600   
Kentucky   
10,600   
$920   
$11,236,300   
Louisiana   
15,100   
$957   
$17,357,300   
Maine   
3,800   
$923   
$4,030,200   
Maryland   
22,200   
$991   
$26,365,400   
Massachusetts   
21,800   
$975   
$25,071,800   
Michigan   
34,900   
$976   
$38,274,800   
Minnesota   
13,500   
$818   
$14,043,900   
Mississippi   
8,100   
$861   
$8,685,000   
Missouri   
19,500   
$893   
$20,803,400   
Montana   
3,400   
$851   
$3,632,100   
Nebraska   
4,700   
$901   
$5,007,300   
Nevada   
10,200   
$890   
$11,143,900   
New Hampshire   
4,200   
$982   
$4,923,100   
New Jersey   
24,400   
$920   
$27,408,300   
New Mexico   
6,500   
$868   
$7,032,700   
New York   
51,400   
$1,029   
$60,837,400   
North Carolina   
27,500   
$895   
$29,304,100   
North Dakota   
2,200   
$953   
$2,482,600   
Ohio   
31,400   
$909   
$32,939,900   
Oklahoma   
14,300   
$902   
$15,566,900   
Oregon   
15,300   
$847   
$15,857,800   
Pennsylvania   
38,600   
$1,031   
$43,412,900   
Rhode Island   
2,600   
$986   
$2,980,500   
South Carolina   
11,900   
$840   
$12,564,900   
South Dakota   
2,200   
$892   
$2,346,300   
Tennessee   
16,800   
$909   
$18,007,000   
Texas   
93,400   
$960   
$107,130,200   
Utah   
7,800   
$836   
$8,191,700   
Vermont   
1,700   
$911   
$1,818,600   
Virginia   
25,900   
$914   
$28,944,600   
Washington   
26,200   
$976   
$31,110,300   
West Virginia   
3,800   
$950   
$4,130,400   
Wisconsin   
11,800   
$837   
$12,139,400   
Wyoming   
2,100   
$961   
$2,416,300   
Totals   
938,800   
$932   
$1,037,161,300   
     
*  Excluding credits.