While many dread this time of the year and fear some kind of issue associated with their tax return, the vast majority of people filing a return are actually owed money.
From year to year, approximately three in every four filers get some money back although this year's average refund will be $326 lower due to the expiration of many pandemic-related benefits and deductions.
DON'T MISS: Reasons Why My Tax Refund Is Not What I Expected
While Internal Revenue Service (IRS) is dealing with a backlog of more than 2.17 million unprocessed returns created by the pandemic, there is also more $1.5 billion in collective refund money that was left unclaimed.
Here's What You Need To Do To Claim That Expiring Tax Refund
In an April 13 notice, the government agency told those who did not file a return in 2020 that they have until July 17, 2023 to claim any of refund money before it expires.
When divided by the 1.5 million people that the IRS says did not file a tax return of 2019, that number could account to an extra $893 for the average person.
"The Internal Revenue Service today reminded low- to moderate-income taxpayers, especially those who don't normally file a tax return, to consider IRS Free File to prepare their own federal tax return to potentially receive overlooked tax credits or refunds," the government agency said in a statement.
The guided IRS filing service is available to those with an adjusted gross income (AGI) below $73,000 to file directly for free. Those earning above $73,000 can still file online for free but will not be guided through the process.
The Only Way To Get A Refund Is To File, Says IRS
As those earning below $12,950 (or $25,900 for those filing jointly) a year are not obligated to file a return, the IRS says that many "may mistakenly assume that since they owe no tax, they're not entitled to a refund." But by not filing they are often missing out on deductions such as the child tax credit, the child & dependent credit and the premium tax credit that they could claim to get some money back.
"The only way to get a refund is to file a tax return," the IRS says.
This year, the deadline has been set for April 18 with the exception of areas that have been affected by natural disasters — it's been a disaster-heavy 12 months and, this year, a number of counties in California, Georgia, Mississippi, New York and Arkansas have at least until July and in some cases until October to file.
Anyone who needs more time to put together their 2023 return can also file an extension before the deadline.
But the refund deadline for one's 2019 earnings has been set for July 17 because, back in 2020, the deadline was initially extended to the same time period amid the COVID-19 lockdowns. After that, the credits will expire since one cannot change one's refund or receive unclaimed credits from more than four years ago.
"The 2019 tax returns came due during the pandemic, and many people may have overlooked or forgotten about these refunds,” IRS Commissioner Danny Werfel said in a statement. "We want taxpayers to claim these refunds, but time is running out."
