Tax day for 2022 is over. But people who may be sitting on refunds face another deadline as they are yet to file 2019 tax returns that were due in the early days of the pandemic.
If they don’t file by the final deadline of July 17, the US Treasury will keep the money.
Nearly 1.5 million people failed to claim federal refunds for the 2019 tax year, when the typical refund amount was nearly $900, the Internal Revenue Service said this month.
While a July deadline may sound like a long time, collecting documents from previous tax years can take a while.
“We want taxpayers to claim these refunds,” Daniel Werfel, the IRS commissioner, said in a statement, “but time is running out.”
Taxpayers generally have three years from the tax day to file and claim their refunds. (There is no penalty for non-submission if you get money back.)
Tax returns for the 2019 tax year were due in 2020 at the start of the pandemic. Many people have faced “extremely unusual situations” and may have missed their tax returns or forgotten they were owed refunds, Mr Werfel said.
The original tax filing date in 2020 was pushed back to July 15 this year due to the pandemic, so the usual three-year window was again extended to July 17, 2023.
Some of the unclaimed refunds may be for people, such as students or part-time workers, who did not earn enough to meet the enrollment threshold. (The 2019 threshold was $12,200 for single parents and $24,400 for couples applying together, with higher thresholds for those 65 and older.)
“People really want to claim their tax refund and not leave the money on the table,” even if they don’t have to give an explanation, said Lisa Greene-Lewis, chartered accountant and spokesperson for TurboTax.
Refunds may also be due to many low- and middle-income workers who were eligible for the earned income tax credit. Up to $6,557 in 2019 credit is “refundable,” meaning you can get a refund even if you don’t owe any taxes.
The employed person’s tax credit depends on income and family size. For example, in 2019, a person with an income of up to $50,162 and three or more children was potentially eligible for the loan. A person with an income of up to $15,570 and no children may also be eligible.
Although you can still file your 2019 tax return, don’t expect to receive your refund quickly. That’s because 2019 tax returns must be filed on paper, which takes longer for the IRS to process.
“In particular, processing and issuing a refund for paper-filed returns can take a long time,” said Eric Bronnenkant, head of tax at digital advisor Betterment.
Eric Smith, an IRS spokesman, said the agency accepts electronically filed tax returns for the current season and two years prior. For this year, this means that you can file tax returns for tax years 2022, 2021 and 2020 electronically.
However, declarations for 2019 “must be submitted on paper, whether self-created or submitted with the assistance of a paid preparer,” he said.
You can file your 2019 tax return using commercial do-it-yourself tax software, but you must print it out and send it to the IRS (IRS Free File, the program that gives applicants access to free tax software based on their income), can only be used for year-to-date returns, said Mr. Smith.)
But if you haven’t already filed a return for tax year 2020 or 2021, you can have a tax professional prepare it and file it electronically. The IRS provides a searchable list of certified preparers.
Mr. Smith added that the IRS was “looking at opportunities to expand electronic filing, including reviewing electronic filing of prior-year returns.”
Here are some questions and answers about filing your 2019 tax return:
What if I need tax documents to complete my 2019 tax return?
You should collect the documents soon, as it may take some time to receive W-2 statements and other documentation before the July deadline. You can request copies of W-2s from your employer and interest statements from your bank. If you are unable to obtain the forms this way, the quickest option is to order a free “payroll and income” transcript online from IRS.gov, which includes the information reported to the IRS. You may also request a transcript in writing by submitting Form 4506-T. However, the application can take several weeks to process, so the IRS urges people to try the other options first.
Can I get my 2019 refund if I haven’t filed tax returns for 2020 and 2021?
Your 2019 refund check may be withheld if you didn’t file 2020 and 2021 tax returns, the IRS said. The refund will also be applied to any amounts you still owe to the IRS or any state tax agency. The reimbursement money can also be used to settle unpaid child support or past-due federal debts such as student loans.
Where can I find tax forms for the previous year?
Current year and prior year tax forms and instructions are available online at IRS.gov Forms and Publications or by calling 800-TAX-FORM (800-829-3676).