Almost 1 million Americans are owed $1 billion in IRS tax refunds - but there are just two weeks left for you to claim

Around 900,000 Americans are missing out on valuable funds as they have yet to claim their 2020 tax refund. 

Taxpayers have until May 17 to file to recoup more than $1 billion in unclaimed refunds, the Internal Revenue Service announced. 

Typically there is a three year deadline to claim refunds before the cash becomes property of the US Treasury. 

In previous years, the normal filing deadline to claim old refunds has fallen around the same time as the federal tax deadline, which was April 15 this year for 2023 returns. But an extension was granted for 2020 refunds due to the Covid-19 pandemic.

The average median refund for 2020 is $932, according to the IRS, but this varies by state, with some typical payouts as much as $1,031. 

According to the IRS, Texans are owed the highest amount of total refunds, with an estimated 93,400 residents owed $107,130,200 in rebates. 

The state-by-state breakdown calculated by the agency shows that California has the second highest sum of possible refunds, with $94,226,300 owed to 88,200 people. 

New York comes in third, with $60,837,400 owed to 51,400 residents. 

The IRS predicts 53,200 Floridians could still be owed more than $58 million, while 38,600 people living in Pennsylvania could be sitting on $43,412,900 in unclaimed cash. 

Pennsylvania residents are also due the highest average payout at $1,031, closely followed by New Yorkers at $1,029. 

'There's money remaining on the table for hundreds of thousands of people who haven't filed 2020 tax returns,' Werfel said in a statement.

'We want taxpayers to claim these refunds, but time is running out for people who may have overlooked or forgotten about these refunds.' 

Werfel added that the 'extremely unusual situations' many faced during the pandemic could have led them to forget about a potential refund on their 2020 tax returns.

'People may have just overlooked these, including students, part-time workers and others. Some people may not realize they may be owed a refund,' he said.

Everyone that is hoping to receive these 2020 funds this year must meet certain requirements.

The IRS confirmed in a March 4 announcement that most taxpayers who were US citizens or US residents in the respective year are eligible.

However, anyone who fits that qualification must also not be a dependent of another taxpayer and have a social security number issued before the tax return's due date.

The 2020 funds can also be claimed for someone who passed away that year or later.

But it is important for individuals to be able to file efficiently and correctly.

The IRS reminded taxpayers in their recent statement that there are ways for them to get their forms before the May deadline.

Taxpayers who are eligible for the 2020 refunds are advised to start the process of filing those returns early.

In order to do so, tax filers should request copies of 2020 documents as soon as possible.

'Taxpayers who are missing Forms W-2, 1098, 1099 or 5498 for the years, 2020, 2021 or 2022 can request copies from their employer, bank or other payers,' the IRS indicated on their website.

For those who are not able to get those forms from their employer or other payers, they can just order a free wage and income transcript through the IRS Get Transcript Online tool.

The agency noted that taxpayers who are looking to file a Form 45-6-T with the IRS should request a wage and income transcript. 

That transcript will show data from information returns received by the IRS such as W-2s and 1099s.

Although requests for these transcripts can take several weeks, it will provide the information needed to file a tax return.