Who wouldn’t seize an earnings tax refund if they’d one coming?

About 940,000 individuals, it seems — as a result of they haven’t filed returns for the 2020 tax 12 months, regardless that they could be due a refund for that 12 months. However there’s nonetheless near a month left to file and gather the refunds. The Inner Income Service estimates that the everyday refund for the individuals on this group is greater than $900.

“There’s cash remaining on the desk for a whole bunch of hundreds of people that haven’t filed 2020 tax returns,” the I.R.S. commissioner, Daniel Werfel, mentioned in a press release. The deadline for most individuals to file a return and gather the refunds, which complete about $1 billion, is May 17.

Potential refunds vary from a typical quantity of $761 in Idaho to greater than $1,000 in New York and Pennsylvania, the I.R.S. mentioned. (Precise quantities differ relying on the filer’s tax scenario.)

Some individuals could merely have forgotten to file a 2020 return due to “extraordinarily uncommon conditions” through the pandemic, Mr. Werfel mentioned. Nonetheless, mentioned Eric Smith, an I.R.S. spokesman, the variety of taxpayers probably due a refund this 12 months for 2020 shouldn’t be at a file stage. Last year, which was the three-year deadline to file and gather unclaimed refunds from the 2019 tax 12 months — returns that had been initially due within the depths of the pandemic in 2020 — almost 1.5 million individuals had been probably due refunds, usually about $800.

The I.R.S., too, was affected by the pandemic. The company struggled to course of paper tax returns and correspondence, although the I.R.S. has “nearly eradicated our backlog of unprocessed paper returns” for particular person returns, Mr. Smith mentioned.

For those who don’t file a 2020 tax return by the cutoff, you’ll lose the refund — and the Treasury Division retains it. “Why depart that cash on the desk?” mentioned Tom O’Saben, director of tax content material and authorities relations with the Nationwide Affiliation of Tax Professionals.

Typically, taxpayers have three years to file a return and declare refunds. (There’s no penalty for failing to file should you’re getting a refund.) Tax returns for 2020 had been due in 2021, however the submitting deadline that 12 months was postponed till Might 17 from the standard mid-April date due to the pandemic. So the I.R.S. has additionally stretched the three-year window for submitting these returns by a month.

Some unclaimed refunds could also be owed to part-time employees and others who didn’t earn sufficient cash to fulfill the requirement for submitting a return. (The submitting threshold in 2020 was $12,400 for single filers and $24,800 for {couples} submitting collectively; greater thresholds utilized for these 65 and older.)

Potential refunds may very well be greater than the I.R.S. estimates due to the impact of tax credit in addition to pandemic stimulus funds made in 2020. “The truth is these are conservative” estimates, Mr. Smith mentioned.

Some individuals could also be eligible for recovery rebate credits in the event that they didn’t obtain their pandemic stimulus checks — also called financial impression funds — in 2020. Most eligible individuals did get their funds or have already claimed them as a tax credit score, the I.R.S. mentioned. But when they certified and didn’t obtain the funds, they’ll file a tax return to get the cash as a credit score — even when they’d minimal or no earnings. The credit score is “refundable,” that means you may nonetheless get the cash as a refund even should you don’t owe any tax.

Additionally, many low- and moderate-income employees could also be eligible for the earned-income tax credit score, which can also be refundable. The earned-income tax credit score relies on household earnings and dimension. For 2020, the credit score was value as a lot as $6,660 (for somebody with earnings as much as $50,594 and three or extra kids).

“That’s a considerable amount of cash for working households,” Mr. O’Saben mentioned.

Even filers with out kids are eligible for the credit score if their earnings qualifies, mentioned Andy Phillips, director of H&R Block’s Tax Institute. In 2020, a childless particular person with earnings of as much as $15,820 was probably eligible.

Individuals who have missed submitting a tax return for one 12 months have usually missed different years as nicely, mentioned Cynthia Leachmoore, president of the Nationwide Affiliation of Enrolled Brokers, whose members are federally licensed tax professionals. Folks could initially fail to file just because they procrastinated, or maybe as a result of they owed cash, after which discover it tough to get again on monitor.

“They assume it’s insurmountable,” she mentioned. “It turns into a tough cycle to interrupt.”

For those who haven’t filed a return for 2021 or 2022, the I.R.S. could maintain your 2020 refund till you do. Additionally, your refund could also be utilized to any tax quantities you continue to owe or used to offset unpaid baby help or different past-due federal debt, like pupil loans.

Bear in mind that 2020 returns should be filed on paper, whether or not you do it your self or use a paid preparer. The I.R.S. accepts electronically filed returns for the present tax season and two years prior, Mr. Smith mentioned. You will discover prior-year tax varieties on-line at IRS.gov, or use do-it-yourself software program to arrange your return. However you’ll need to print the 2020 return and mail it to the I.R.S.

Ms. Leachmoore suggested mailing the return by licensed mail with a return receipt requested, so you’ll have proof that you simply met the Might 17 deadline and that the I.R.S. obtained your return.

There are some exceptions to the prolonged Might submitting deadline, Mr. Smith mentioned, comparable to navy service in a fight zone or a “monetary incapacity” that stops you from managing your cash due to a bodily or psychological impairment.

However usually, he mentioned, it’s greatest to file the return by Might 17 so you may declare your refund. “The earlier you file,” he mentioned, “the earlier you’ll get your cash.”

Listed here are some questions and solutions about late-filed tax returns:

What if I don’t have the tax paperwork I have to file a 2020 return?

You may ask your employer for W-2 wage statements, companies for 1099 varieties should you labored for them as a contractor, and your financial institution for curiosity statements. For those who can’t get the paperwork that approach, you may order a free “wage and earnings” transcript, which exhibits data from numerous paperwork the I.R.S. has obtained about you, together with W-2 wage statements and 1099 varieties, utilizing the I.R.S. “Get Transcript” on-line software. For the reason that deadline is quick approaching, “begin to do the legwork now,” Mr. O’Saben mentioned.

When can I count on my refund after submitting my 2020 return?

Filers shouldn’t count on speedy refunds as a result of paper returns usually take longer to course of, tax consultants mentioned. “It’s not going to be 21 days, like it’s for digital submitting,” mentioned April Walker, lead supervisor of tax apply and ethics with the American Institute of Licensed Public Accountants.

Mr. Smith on the I.R.S. mentioned that should you filed a “full and correct” 2020 paper tax return, the refund ought to be issued in about six to eight weeks from the date the company obtained the return.

You may’t monitor your 2020 refund utilizing the I.R.S. “Where’s My Refund?” service as a result of it may be used just for the present tax season and two years prior, Mr. Smith mentioned. You may, nevertheless, create an I.R.S. account, which will be useful in monitoring older refunds, he mentioned.

What if I missed the April 15 deadline to file my 2023 tax return?

It’s sensible to file as quickly as you may, Mr. Smith mentioned. For those who’re owed a refund, you may’t get it till you file. And should you owe tax, you’ll decrease penalties and curiosity charged. (You may ask for a waiver of penalties, if in case you have a historical past of submitting on time.)