Time is running out to apply for $1 billion in unclaimed stimulus checks and other credits from the IRS
Time is running out to file one’s 2020 tax return which corresponded with a median refund of $932. Here is what you need to know.
In the United States, taxpayers have three years to submit a return and still be eligible to receive a refund. This means that this is the last year to submit a 2020 tax return, which happens to be a year when larger refunds were issued thanks to pandemic-related assistance passed by Congress in the year following the initial outbreak of the global health emergency. Critically, the deadline of 17 May will also be the last opportunity to claim stimulus checks distributed in 2019, as those that were not received on time as a part of one’s 2020 tax refund will not be able to be claimed after this final filing deadline passes.
The IRS reported that the median refund size for the 2020 tax year was $932, with the amount varying slightly by state.
- Alabama: $926
- Alaska: $931
- Arizona: $871
- Arkansas: $923
- California: $835
- Colorado: $894
- Connecticut: $978
- Delaware: $945
- District of Columbia: $968
- Florida: $891
- Georgia: $900
- Hawaii: $979
- Idaho: $761
- Illinois: $956
- Indiana: $922
- Iowa: $953
- Kansas: $900
- Kentucky: $920
- Louisiana: $957
- Maine: $923
- Maryland: $991
- Massachusetts: $975
- Michigan: $976
- Minnesota: $818
- Mississippi: $861
- Missouri: $893
- Montana: $851
- Nebraska: $901
- Nevada: $890
- New Hampshire: $982
- New Jersey: $920
- New Mexico: $868
- New York: $1,029
- North Carolina: $895
- North Dakota: $953
- Ohio: $909
- Oklahoma: $902
- Oregon: $847
- Pennsylvania: $1,031
- Rhode Island: $986
- South Carolina: $840
- South Dakota: $892
- Tennessee: $909
- Texas: $960
- Utah: $836
- Vermont: $911
- Virginia: $914
- Washington: $976
- West Virginia: $950
- Wisconsin: $837
- Wyoming: $961
Source: IRS
Unemployment compensation and the 2020 tax year
During the 2020 tax year, millions of workers claimed unemployment benefits after being laid off by their employers either permanently or temporarily as the pandemic began. The American Resuce Plan, passed in early March 2021, allowed “individual taxpayers to exclude up to $10,200 of unemployment compensation they received in the tax year 2020 only,” according to the IRS. This figure can be doubled for taxpayers who file jointly with their spouse. However, this additional reduction in one’s tax bill is only available to those who made $150,000 or less in 2020 and does not increase if a married couple files jointly. The IRS made clear that any unemployment benefits over and above the $10,200 figure must be recorded as income and will be taxed.
Last chance to claim the $1,200 stimulus check
In March 2020, Congress approved a bill that included $1,200 in economic impact payments, popularly known as stimulus checks. The payments were made to everyone earning under the income limits, which were set at an Adjusted Gross Income of $75,000 ($150,000 for married couples filing jointly), with the stimulus check value reducing in a tapered fashion up to a maximum of $99,000 ($198,000 for married couples filing jointly). If you did not receive yours, this month is the last that they can be claimed. Be sure not to miss the deadline!
When is the deadline to file?
Taxpayers who have yet to file their 2020 return have until 17 May to do so. A paper return will need to be submitted if you plan to submit your return yourself. The IRS website states that “prior year returns can only be filed electronically by registered tax preparers for the two previous tax years.” Since the 2020 return falls outside that window, you must submit all the correct documents to the tax authority the old-fashioned way. To avoid making mistakes and get your questions answered, contacting the IRS by phone at 800-829-1040 from 7 a.m. to 7 p.m. local time might be a good idea. Additionally, you can make an appointment with your local office to get in-person support. The list of offices can be found on the IRS’ website.