Time is running out for some Americans to get their share of unclaimed tax refunds, the Internal Revenue Service (IRS) said.
Those who didn't file a tax return in 2020 could still be eligible to claim Economic Impact Payments linked to coronavirus tax relief via the Recovery Rebate Credit. The IRS issued the first and second rounds of Economic Impact Payments, often referred to as stimulus checks, in 2020 and in early 2021.
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The deadline for any outstanding returns where a refund may be claimed usually falls in line with the annual April tax deadline, which was April 15 this year. However, due to the coronavirus pandemic, this was postponed to May 17, giving people extra time to file. The IRS also reassured taxpayers there is no penalty for claiming a refund on a late-filed tax return.
The lack of claims is believed to be due to this, IRS Commissioner Daniel Werfel said, according to a statement on the website. "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."
Many people "may have just overlooked these, including students, part-time workers and others," he said. "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."
Other refunds are also still up for being claimed. Some 940,000 people are yet to file their 2020 tax return, with the May 17 deadline less than two months away. Many low- and moderate-income workers may have not yet claimed the Earned Income Tax Credit (EITC). For 2020, the EITC was worth as much as $6,660 for taxpayers with qualifying children.
Read more: The Child Tax Credit: Who Qualifies and How to Claim It
The "midpoint" tax refund, not including the coronavirus Recovery Rebate Credit, amounts to $932. This means about half of those who are yet to claim are owed more than that amount, and the other half is owed less.
Newsweek contacted the IRS for comment via email outside of normal working hours.
U.S. law stipulates that taxpayers have three years to file and claim tax refunds, with any unclaimed money after this time becoming property of the U.S. Treasury.
"There's money remaining on the table for hundreds of thousands of people who haven't filed 2020 tax returns," said Werfel. "We want taxpayers to claim these refunds, but time is running out for people who may have overlooked or forgotten about these refunds. There's a May 17 deadline to file these returns, so taxpayers should start soon to make sure they don't miss out."
If you also haven't filed returns for 2021 and 2022, any refund could be held by the IRS until these are completed. The IRS also stipulates that "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."
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