Last Chance to Claim Tax Year 2019 Refunds
The IRS recently announced that the nearly 1.5 million taxpayers who have unclaimed tax refunds for tax year 2019 have until July 17, 2023 to submit their returns. It is estimated that almost $1.5 billion in refunds are as yet unclaimed, with an average median refund of $893.
Returns for tax year 2019 came due during the beginning of the COVID-19 pandemic in early 2020, during which many people faced unusual or stressful situations. Taxpayers may have overlooked completing their tax return or forgotten to claim their refund. Some vulnerable taxpayers include students, part-time workers, and low-income earners, all of whom may have inadvertently forgotten to file their tax refund without realizing they were owed a refund.
2019 Tax Refund Claims
In 2020, the tax deadline was extended until July 15 due to the national health emergency, and this postponed deadline may have also confused taxpayers. However, it provides an advantage this year. Taxpayers have a three-year window in which to claim old refunds, which generally falls around the April filing deadline. Since the filing deadline was extended in 2020, the three-year window for 2019 unfiled returns is now extended to July 17, giving taxpayers even more time to file and claim their refunds.
It’s not just refunds at stake; low and moderate income workers may be eligible for the Earned Income Tax Credit (EITC), which was worth as much as $6,557 in 2019. This credit helps individuals and families who have incomes below a certain threshold. Those limits in 2019 were:
- $50,162 ($55,952 if married filing jointly) for those with three or more qualifying children
- $46,703 ($52,493 if married filing jointly) for people with two qualifying children
- $41,094 ($46,884 if married filing jointly) for those with one qualifying child
- $15,570 ($21,370 if married filing jointly) for people without qualifying children.
As a reminder, your 2019 tax refund may be held if you haven’t filed tax returns for 2020 and 2021, so it’s important to take care of those items. Also, any potential refund will be applied to outstanding amounts owed to the IRS or state agencies and could be used to offset other debts, such as unpaid child support or student loans.
The IRS has estimated how many people in each state may be entitled to a refund (the actual amount, however, will be based on your individual tax situation).
- New Jersey: 40,500 estimated taxpayers ($42,035,900 in total refunds, with a median refund of $924)
- New York: 81,600 estimated taxpayers (86,826,200 in total refunds, with a median refund of $945)
- Pennsylvania: 56,000 estimated taxpayers ($57,572,600 in total refunds, with a median refund of $924)
Contact Us
If you have questions about the information outlined above or need assistance with a tax or accounting issue, Klatzkin can help. For additional information call 609-890-9189 or click here to contact us. We look forward to speaking with you soon.
©2023 Klatzkin & Company LLP. The above represents our best understanding and interpretation of the material covered as of this post’s date and should not be construed as accounting, tax, or financial advice. Please consult your tax advisor concerning your specific situation.