LONG ISLAND — The IRS is out with some good news: It owes money to tens of thousands of New Yorkers starting in 2020 — but people need to act fast to make sure they're not leaving money on the table. In total, New Yorkers owe nearly $61 million in unclaimed tax refunds as of 2020.
The IRS recently announced that nearly a million people across the country have not filed their returns for the 2020 tax year. That includes 51,400 New Yorkers who owe nearly $61 million, according to the IRS.
Each year, IRS officials say, about $1 billion to $1.5 billion in refunds go unclaimed, compared with about $300 billion in refunds that are paid.
“We want taxpayers to claim these refunds, but time is running out for people who may have overlooked or forgotten about these refunds,” said IRS Commissioner Danny Werfel.
Under federal law, taxpayers typically have three years to file and claim their tax refunds until that cash becomes the property of the U.S. Treasury.
However, the deadline has been extended for 2020 returns due to the pandemic — taxpayers now have until May 17 to claim their 2020 returns, according to the IRS.
“People have encountered highly 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 overlooked them, including students, part-time workers and others. Some people may not realize they may be owed a refund. We encourage people to check their records and start collecting records now , so they don't run the risk of missing the May deadline.”
The median amount of unclaimed refunds for 2020 is $932, the IRS estimates.
In addition to making sure money ends up back in someone's pocket, taxpayers have another reason to make sure they complete their 2020 returns, the IRS says.
Low- and moderate-income workers may be eligible for the Earned Income Tax Credit — which was up to $6,600 for taxpayers with children in 2020.
Those who need to file their 2020 returns should request a W-2, 1098, 1099 or 5498 from their employer or bank, or order a free wage and income transcript with the IRS's Get Transcript Online tool, the IRS said. IRS.
Further instructions are available on the IRS website or by calling 800-829-3676.
