Generally, the IRS does not need to pursue taxpayers for refund claims. As soon as filing season begins, millions of Americans file 1040s to collect money owed.
As of March 15, the average refund amount was $3,109, an increase of 6% from the same period last year.
However, there are always those who do not reach the application stage and leave their refund unclaimed. The IRS estimates that about 940,000 people collectively owe about $1 billion for the 2020 tax year.
According to the IRS, the national average midpoint for unclaimed refunds in 2020 is $932, meaning half are higher than that amount and half are lower. In his two states, New York and Pennsylvania, the median price is just over $1,000.
The IRS is also reminding people to double check whether they are eligible to receive the 2020 Pandemic-Related Recovery Rebate Credit. This relates to the first two of his Economic Impact Payments, with the 2021 one being his third.
If you think you’re missing one or more stimulus payments and might be eligible for a credit, take that into account, said Eric Smith, a spokesperson for the agency. .
“In other words, if you get the third one but miss out on one of the first two, don’t think you can wait until next year to claim it,” Smith says. “Claim now.”
As the filing deadline approaches, here’s what you need to know about uncollected refunds.
