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-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 |
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.
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 “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.
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.
Let us know if you require assistance and/or any questions, clarification on the matter. Thanks.
Victor Molokwu, CPA
Email:molokwu@sbcglobal.net
Website: cpavictormolokwu.com
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