Nearly 1.5 million Americans still have time to get their unclaimed 2019 tax refunds worth a median amount of $893. But time to do so is dwindling.
The Internal Revenue Service said it is holding about $1.5 billion in unclaimed tax refunds for the 2019 tax year. Taxpayers who are owed a refund have three years from the original tax deadline to claim them. Because the IRS moved the deadline to file 2019 tax returns to July 17, 2020, because of the pandemic, the deadline to claim these refunds is July 17 of this year.
If taxpayers don’t file their 2019 tax returns to receive their unclaimed refund, the money becomes the property of the US Treasury.
“Time is running out for people owed a tax refund in 2019,” IRS Commissioner Danny Werfel said in a statement. “The final window closes on July 17 for taxpayers who didn’t file a tax return for 2019 to claim their refund. The IRS continues to urge people who may have overlooked filing during the pandemic to act quickly before they lose their final chance to claim a potentially substantial refund.”
Some taxpayers didn’t file a tax return because they didn’t earn enough money to be required to file. They face no penalty if they are owed a refund, according to the IRS.
Half of those 1.5 million taxpayers would get more than the median refund amount — partly because many eligible taxpayers could get up to $6,557 in 2019 if they were eligible for the Earned Income Tax Credit (EITC).
How to file an old return
You can’t electronically file your 2019 return.
“Taxpayers would need to file a paper return and send it to the IRS by certified mail, so you can confirm it was received,” Adam Brewer, a tax lawyer at AB Tax Law, told Yahoo Finance. “And follow up with the IRS to make sure they process it and issue you the refund.”
Even though the deadline to claim 2019 refunds is July 17, taxpayers should try not to wait until the deadline to file.
“Taxpayers should plan ahead to find the necessary information, as some written requests can take several weeks to obtain them,” Dwight Nakata, a certified public accountant at YNCPAs, told Yahoo Finance. “Taxpayers can request copies of key tax documents — such as Form W-2, 1098, 1099 or 5498 for years 2019, 2020, or 2021 — by requesting copies from employers, banks, or other payers.”
Tax forms for 2019 — such as the 1040 and 1040-SR — are available on the IRS Forms, Instructions & Publications website or by calling toll-free 800-TAX-FORM (800-829-3676).
Taxpayers can also request a free wage and income transcript by filing Form 4506-T on IRS.gov using the Get Transcript Online tool.
A tax refund can be withheld if taxpayers have not filed returns for 2020 and 2021. Also, a refund could be held by the IRS or state tax agencies to pay any unpaid child support or past due federal debts like federal student loans.
Taxpayers must properly address, mail and ensure the tax return is postmarked by July 17, 2023, to get their refund.
Low-income taxpayers “can head to their nearest VITA (Volunteer Income Tax Assistance) site to get support in filing tax returns from past years,” Joanna Ain, associate director of policy at Prosperity Now, told Yahoo Finance. “VITA volunteers can help individuals access critical credits, like the Earned Income Tax Credit (EITC) and the Child Tax Credit (CTC), to make sure families do not miss out.”
Ronda Lee is a personal finance senior reporter for Yahoo Finance and attorney with experience in law, insurance, education, and government. Follow her on Twitter @writesronda
Click here for the latest personal finance news to help you with investing, paying off debt, buying a home, retirement, and more
Read the latest financial and business news from Yahoo Finance
Source: https://finance.yahoo.com/news/taxes-last-chance-to-claim-your-2019-refund-153035212.html