INDIANAPOLIS — An important deadline is coming up if you want to claim money you are owed.
The Internal Revenue Service says it is looking to unload a billion dollars in refunds nationwide for the tax year 2020.
IRS spokesperson Rodney Bearman said the money is there because people never filed a tax return.
"Many could have been adversely impacted by the pandemic or believe that they did not meet the income threshold to file in that particular year," Bearman said.
In Indiana, the IRS estimates just under 20,000 individuals in Indiana may be owed a refund from tax year 2020. The estimated potential refund is $21 million, the median potential refund is over $900.
"Your estimate is based on the income that is reported to the Internal Revenue Service by employers," Bearman said.
The IRS holds on to the excess payments for three years. Then, it becomes property of the U.S. Treasury, and you cannot get it back.
To claim this money before its gone, all you need to do is file your 2020 taxes by May 17. If you need help, the free tax service VITA can help.
"They can provide support, or support in the forms of 'what do I need to do?' since it's been three years," Berman said, "Finding the correct form [because] most of the forms that are out there now are for the current tax year, so finding a form for 2020."
If you typically get a big refund, consider updating how much taxes you pay year-round. That way, you are not giving the government a loan.
To better estimate your withholdings, use the calculator on IRS.gov. You can take that information to your employer and ask that your payment preferences be updated.