The IRS has announced a new tax refund of over $900 for deserving recipients. Nearly 940,000 people have unclaimed tax refunds from the year 2020, and the sum is massive: $1 billion. If you are one of them, you need urgent attention, as the filing deadline is May 17.
Daniel Werfel, the Commissioner of the Internal Revenue Service, excitedly announced the IRS Direct File program. This program simplifies the tax filing process by offering an option to file taxes online.
For the first time in history, the tax return experience is set to become trouble-free and accessible to approximately 19 million people across 12 states. Regrettably, there's not much time left for the filers who have missed or forgotten about these payments.
(Photo : Pexels/Nataliya Vaitkevich)
Origin of this Massive Tax Refund - The Story Revealed
COVID-19 is a global pandemic that has caused governments to organize relief programs to help citizens. The Economic Impact Payments (EIPs), introduced in 2020, are part of those programs. Some people have not yet claimed their EIPs. The IRS set a generous three-year deadline, giving citizens ample time to claim funds.
The CARES Act was legislated in March 2020. It offered various forms of financial aid and was worth $2.2 trillion. Adults could receive up to $1,200, and children could get $500 in direct payments. In December 2020, there was an additional round of stimulus checks. The limit was $600 per person. The Federal Government reports that the IRS has circulated $271.4 billion in first-round payments and $141.4 billion in second-round payments.
Exceptions were seen with students and part-timers who overlooked the refund-claiming process during the pandemic disruption. Therefore, the IRS encourages everyone to assess their files and accelerate the compilation of paperwork, as a delay could result in missing out on stimulus payments.
Armor Up and File Your Tax Refund Claim Today
The IRS makes it clear. If you want to file your claim, act fast. Submit your 2020 tax forms. They should be from employers and other income sources. You might need several forms, including W-2s and Form 1099. Form 1098 is for mortgage interest, and Form 5498 is for IRAs.
There's another option if you can't get regular forms. You can get a tax transcript. Get it from the IRS. Form 4506-T will give you a wage and income transcript. The crucial step is filing the returns once you've collected all applicable documents. The filing could be accomplished with the help of tax preparers via GetYourRefund.org or through VITA (Volunteer Income Tax Assistance) centers.
Simplify the Process with IRS Tax Preparation Assistance
At times, taking the first step might feel intimidating. In such cases, search for IRS tax assistance. Tax aid is available through Volunteer Income Tax Aid and Tax Counseling for the Elderly programs. Even for those exempt from filing taxes, it's worth considering the options.
The preferred method is direct deposit; remember, late tax returns don't get penalty-free refunds. People with an IRS online account can verify whether they've received EIPs. Recovery Rebate Credits aren't considered income when determining eligibility for federal benefits, and claiming the credit doesn't influence immigration status or affect obtaining a green card or immigration benefits.
With May 17 just around the corner, ensure you take advantage of this opportunity the IRS offers. Don't miss out on your tax refund!
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