Can I Still Get My 2020 Tax Refund?

In early 2024, the Internal Revenue Service (IRS) was holding over a billion dollars in unclaimed tax refunds for the 2020 tax year. For those who may have overlooked filing during the pandemic, the final deadline to claim these refunds has now passed.

The Refund Claim Deadline

The law provides a three-year window for taxpayers to file a return and claim a tax refund. If a return is not filed within this period, any refund the taxpayer was entitled to is forfeited to the U.S. Treasury.

Due to the COVID-19 pandemic, the IRS postponed the filing deadline for 2020 tax returns to May 17, 2021. This postponement shifted the three-year window, making the final date to claim a 2020 refund May 17, 2024. That deadline has passed, and the money is no longer available to be claimed.

Even for those who filed by the deadline, a 2020 refund could be held if tax returns for 2021 and 2022 were not also filed. The IRS may delay issuing a refund to settle a taxpayer’s outstanding tax liabilities for subsequent years.

Required Information and Forms for Filing

Filing a 2020 tax return required using the specific forms for that year, primarily the 2020 version of Form 1040 or Form 1040-SR for seniors. These forms and any necessary schedules can be found on the IRS website’s “Prior Year Forms and Instructions” page. Using the correct year’s forms is necessary as tax laws change annually.

Completing the return accurately required Social Security numbers for the filer, their spouse, and any dependents claimed. It also required all income-reporting documents from 2020, such as Form W-2 from employers, Form 1099-G for unemployment compensation, and other 1099 forms for interest or nonemployee income.

For those missing income documents, the necessary information could be obtained directly from the IRS. The “Get Transcript Online” tool on the IRS website provides a free Wage and Income Transcript. This transcript shows data from information returns the IRS has received, which could be used to complete a prior-year tax return.

How to Submit a Prior-Year Tax Return

Prior-year tax returns, including those for 2020, cannot be filed electronically, as the IRS e-file system is only for the current tax year. These returns had to be submitted by mail to a specific processing center based on the filer’s location.

Potential for Refund Offset

Even when a refund is due, the full amount may not be received. The Treasury Offset Program (TOP) is a system that collects past-due debts owed to federal and state agencies. If a taxpayer’s name and identification number match a debt, their federal tax refund can be used to pay it.

Common debts that can lead to a refund offset include past-due federal or state income taxes, unpaid child support, and defaulted student loans. If a refund is seized to cover a debt, the Department of the Treasury’s Bureau of the Fiscal Service sends a notice detailing the offset amount and the agency that received the payment.