ONE MILLION Americans could receive a big payout as the IRS has $1 billion in unclaimed funds that will expire within days.
This week, the IRS sent a final reminder asking the public to check if they are owed money before time runs out to claim it.
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Taxpayers may never see a dime if they don’t act quickly.
The IRS says those who didn’t file their 2020 taxes have until May 17 or any potential return they may have received will go unclaimed and be gone forever.
Typically, the filing deadline for claiming old refunds comes around the April 15 tax deadline.
However, due to the pandemic, the 2020 deadline was pushed back to May to allow Americans some extra time.
More than $1 billion in 2020 refunds remain unclaimed, according to the IRS.
But some could lose more than just their 2020 tax refund. Many low-income Americans could be eligible for the 2020 earned income tax credit.
The EITC is a refundable tax credit designed to provide financial assistance to low-income individuals and families by reducing the amount of tax they owe.
The EITC may even end up as a refund, but only if the credit is more than what you owe in taxes.
The value of the credit depends on several factors, such as income level, application status and number of children.
For 2020, the EITC is worth up to $6,660 for those with qualifying children.
Essentially, it’s a way to support hard-working Americans who may be facing financial challenges despite having a job.
But the potential money doesn’t just end there. There’s also money on the table for those who didn’t receive all three stimulus checks or received less money than others.
Starting in 2020, the US government issued stimulus checks to most taxpayers as a way to try to help mitigate 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 eligible for stimulus checks but did not receive them for whatever reason the opportunity to receive the money they should have received.
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 any year, payments were gradually reduced up to an income of $99,000, with anything above being ineligible for a check.
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The IRS recommends starting filing sooner rather than later as the deadline is approaching.
The agency provided a breakdown of how much money is owed to residents in each state in its website.
The average payout ranges from $800 to over $1,000.
The agency offers free resources for those who need help or are simply overwhelmed by the process.
The IRS says taxpayers who don’t have forms like W-2, 1098, 1099 or 5498 can get copies from their employer or bank.
Those who may have lost contact with a previous employer can request a free salary and income transcript from 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 tax questions specific to you and your situation.
Based on your answers, the virtual assistant can determine if you need to file a tax return, tell you if the type of income you have is taxable, help determine the status of your claim, tell you if you can claim a dependent , your eligibility to claim a credit, and even whether you can deduct certain expenses.
HOW TO BANK UNCLAIMED MONEY
This story originally appeared on The-sun.com read the full story
