$900 IRS Refund – Eligibility, Claiming Procedure, What if refund not received?

The IRS reports about $1 billion in unclaimed refunds from 2020 tax returns, with an average refund of $932. The deadline to file your 2020 taxes is until May 17 to claim your refund.

$900 IRS Refund

The Internal Revenue Service (IRS) has brought attention to the opportunity for taxpayers to claim unclaimed refunds for the tax year 2020, with an estimated total of $1 billion awaiting rightful claimants. 

This unclaimed money represents potential refunds owed to individuals who did not file their tax returns for 2020, with an average median refund amounting to nearly $900 per person.

The IRS Commissioner, emphasised the urgency for taxpayers to act promptly to claim these refunds before the deadline, which is set for May 17.

Eligibility for $900 IRS Refund  

The eligibility for 2020 $900 IRS tax returns is:

  • Income Limits:
  • Filing as Single, Head of Household, or Widowed:
    • No children or relatives claimed: Maximum AGI of $15,820
    • One child or relative claimed a maximum AGI of $41,756
    • Two children or relatives claimed a maximum AGI of $47,440
    • Three or more children or relatives claimed: Maximum AGI of $50,594
  • Filing as Married Filing Jointly:
    • No children or relatives claimed: Maximum AGI of $21,710
    • One child or relative claimed a maximum AGI of $47,646
    • Two children or relatives claimed a maximum AGI of $53,330
    • Three or more children or relatives claimed: Maximum AGI of $56,844
  • Filing Status:
    • You must be a U.S. citizen or resident alien and cannot file “Married Filing Separately.”
  • Dependents:
    • Having qualifying children can increase the amount of your EITC credit.
    • There are specific requirements for qualifying children, such as age, residency, and relationship to you.

There might be other reasons someone could be owed a refund of around $900 on their 2020 taxes. Here are a few possibilities:

  • Overwithholding: If too much tax was withheld from your paycheck throughout the year, you’d be due a refund when you file.
  • Deductions and Credits: Certain deductions and credits you qualify for can reduce your tax liability and lead to a refund.

How to claim the $900 IRA tax refund?

To file and potentially claim a refund for $900 IRS refund, follow the below steps:

  • Collect your income documents like W-2s from employers, 1099s for freelance income, and any documents related to deductions or credits you plan to claim.
  • You can file your taxes electronically through the IRS website https://www.irs.gov/filing or by mail using paper forms. Electronic filing is typically more precise and quicker.
  • If you are comfortable doing it yourself, you can use tax preparation software or the IRS Free File program for free tax preparation. 
  • Be sure to claim all deductions and credits you’re eligible for. Research common deductions like student loan interest or charitable contributions and explore credits like the Earned Income Tax Credit (EITC) based on your income and filing status. 
  • E-filing is the fastest and most secure way to file your return. It also minimises errors and allows you to receive your refund faster, often through direct deposit.

Here are some of the key factors that can affect the amount of your tax refund:

  • Tax Withholding: Throughout the year, taxes are withheld from your paycheck based on your W-4 form. If too much is withheld, you’ll get a refund when you file your return. 
  • Taxable Income: Your total taxable income, which includes wages, salaries, tips, investments, and other sources, plays a major role. The higher your income, the more taxes you’ll owe, generally resulting in a smaller refund or potentially a tax bill.
  • Filing Status: Your filing status (single, married filing jointly, head of household, etc.) affects the tax brackets you fall under and the standard deduction you can claim. 
  • Dependents: Having qualifying dependents like children or elderly parents can entitle you to additional tax credits, potentially increasing your refund.
  • Deductions and Credits: There are various deductions and credits available that can reduce your tax liability. 
    • Common deductions include student loan interest, charitable contributions, and mortgage interest. Credits like the Earned Income Tax Credit (EITC) can further reduce your tax obligation and lead to a larger refund.
  • Estimated Tax Payments: If you’re self-employed or have income not subject to withholding, you’re required to make estimated tax payments throughout the year. 

What to do if you don’t receive your $900 IRS tax refund?

If you don’t receive your $900 tax refund for 2020 taxes, you should take the following steps:

  • Contact the IRS: If you believe you are eligible for the $900 tax refund for 2020 but have not received it, you should contact the IRS to inquire about the status of your refund and address any issues that may have caused the delay.
  • Check for Missing Information: Ensure that all your tax information and documentation for the 2020 tax year are accurate and complete. Any discrepancies or missing information could delay the processing of your refund.

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