The Internal Revenue Service (IRS) is alerting that over one million Americans may lose out on $1.2 billion in tax refunds if they don’t submit their overdue 2022 returns by the April 15 deadline.
Why is it important
It’s been more than three years since the 2022 tax year, and any unclaimed refunds are in jeopardy of being lost under federal regulations.
Once the deadline arrives, those funds no longer belong to the taxpayers. “Time is running out,” the IRS emphasizes.
What you need to know
According to the IRS, more than 1.3 million people across the country still haven’t filed their 2022 federal tax returns, leaving around $1.2 billion in unclaimed refunds.
If taxpayers miss the April 15 deadline, they’ll permanently forfeit the chance to receive that money.
Refund amounts can differ widely from person to person, but the IRS estimates the median refund for unfiled returns in 2022 to be around $686. This means that half of those eligible may be owed more than that amount.
These figures don’t factor in other credits that some filers might be eligible for.
Under U.S. tax laws, individuals typically have three years to file a return and claim a refund. At the end of this window, any unclaimed funds go to the U.S. Treasury.
For 2022 returns, this period will close in April of this year.
The IRS also highlights that filing a return goes beyond recouping withheld taxes.
Many low- to moderate-income earners might qualify for the Earned Income Tax Credit, which aims to assist families and individuals with lower incomes. This credit was valued at up to $6,935 for eligible taxpayers with qualifying children, based on their income and family size.
Even if you’re a taxpayer who can’t find your documents anymore, you still have some options. Often, lost W-2s or other tax documents can be requested from employers, banks, or other payers.
Previous tax forms and instructions are accessible on the IRS website or via phone.
The IRS also published a breakdown by state that estimates how many people still have their 2022 income tax refunds, including the median refund amounts and total unclaimed figures.
They estimate about 1,322,600 individuals nationwide could be eligible for refunds, totaling roughly $1.159 billion.
California and Texas have the highest numbers, with around 143,200 people in California potentially owed about $124.7 million, and approximately 126,000 in Texas potentially owed around $111.7 million.
Florida is also notable, with an estimated 89,000 individuals and about $74.5 million in potential refunds.
People’s opinions
The IRS stated, “Time is running out to claim a $1.2 billion refund for the 2022 tax year.”
“Taxpayers will miss out on more than just the tax refunds from 2022 if they fail to file. The IRS reminds those seeking a 2022 refund that their funds may be withheld if they neglect to file their 2023 and 2024 returns.”
“In addition, the 2022 refund will be applied against any debts owed to the IRS or state tax authorities and could offset past due federal debts, such as unpaid child support or student loans.”
What happens next
As the April 15 deadline nears, the IRS is likely to keep reminding late filers to act quickly before the refund window closes.
This warning also comes amid broader discussions about tax compliance, household finances, and the effects of lost benefits for low-income Americans.
