IRS: $1 Billion in Unclaimed Tax Refunds, Deadline to File Approaching

With less than two weeks left until the May 17 deadline, the IRS is urging over one million Americans to file their 2020 tax returns to claim a whopping $1 billion in unclaimed refunds. This reminder comes as the IRS announced that taxpayers have “a little more time than usual” to file their refund claims due to the pandemic.

“We want taxpayers to claim these refunds,” said IRS commissioner Danny Werfel in a statement.

The midpoint refund amount that an individual filer can receive for the 2020 tax year is $932, according to the IRS. To assist taxpayers in the filing process, the IRS has free resources available, including the Direct File tax prep software that was piloted in 12 states this year.

Americans who filed their taxes earlier this year received over $200 billion in refunds, with the average refund amounting to $3,011. New York and Pennsylvania have the highest refund midpoints, with Texas, California, and Florida following closely behind.

Here are the top five states with the most people who have yet to file their 2020 tax returns, along with the potential refunds they could claim:

1. Texas: 93,400 people, $107,130,200 total potential refund
2. California: 88,200 people, $94,226,300 total potential refund
3. Florida: 53,200 people, $58,210,500 total potential refund
4. New York: 51,400 people, $60,837,400 total potential refund
5. Pennsylvania: 38,600 people, $43,412,900 total potential refund

Time is running out for these taxpayers to claim their refunds, so it’s crucial for them to file their 2020 tax returns before the May 17 deadline.