Question: Taxpayers should be warned that May 17 is the deadline for amending their 2020 tax return or claiming refunds still not received for that year. After May 17 it will be too late. While taxpayers have a three-year deadline after filing to make corrections or claim refunds, the IRS has 10 years to collect from them for any tax due.
Answer: As of late March the IRS estimated that about 5,200 taxpayers in Hawaii were missing out on a total of nearly $6 million in refunds because they hadn’t filed a federal income tax return for the 2020 tax year. As you said, the deadline to claim a refund for that year is May 17.
The median potential refund in Hawaii is $979, higher than the national median of $932, according to the IRS. Median is the midpoint, meaning half the potential refunds are higher and half lower. Across the nation at the end of March, about 940,000 people had not yet filed a 2020 tax return, leaving on the table more than $1 billion in unclaimed refunds, the IRS said.
Taxpayers generally have three years to claim refunds; if they don’t file within that period, the money goes to the U.S. Treasury. The filing deadline to pay taxes for the 2020 tax year was extended to May 17, 2021, due to the COVID-19 pandemic, which is why the three-window to file and claim refunds for that year didn’t expire April 15.
The estimate of unclaimed 2020 refunds does not include the COVID-19-era Recovery Rebate Credit or other potential credits that some students, part-time workers and others may have been eligible for had they filed, the IRS said in a news release.
“By missing out on filing a tax return, people stand to lose more than just their refund of taxes withheld or paid during 2020. Many low- and moderate-income workers may be eligible for the Earned Income Tax Credit. For 2020, the EITC was worth as much as $6,660 for taxpayers with qualifying children,” it said.
Tax year 2020 forms and instructions can be found on IRS.gov.
Filers should know that their 2020 refund may be held if they have not filed tax returns for 2021 and 2022. The IRS also warns that “any refund amount for 2020 will be applied to amounts still owed to the IRS or a state tax agency and may be used to offset unpaid child support or other past due federal debts.”
Last, you are correct that the IRS has more time to collect taxes than filers have to claim refunds. “The IRS generally has 10 years — from the date your tax was assessed — to collect the tax and any associated penalties and interest from you. This time period is called the Collection Statute Expiration Date,” according to the IRS website.
Q: I submitted the juror questionnaire for District Court and am wondering, if I do get picked, is there a certain dress code for federal court?
A: “There is no formal dress code, but we ask that jurors dress business casual. Tank tops, shorts, ball caps, sunglasses, and slippers are not permitted during jury duty,” according to the U.S. District Court website for the District of Hawaii. This court is the main trial court in the federal court system in Hawaii.
To be clear, you have not been summoned for jury duty. You received and returned the juror questionnaire, which is an early step in the process of building a broad jury pool for future trials.
Mahalo
On April 9 my wife and I enjoyed a late lunch at Sushi Bay in Kapolei. When we finished, I went outside and my wife went to pay. After a bit she came out, and I asked her what took so long. She replied, “Someone paid our bill.” We couldn’t believe it as we did not notice anyone inside whom we knew. I have read about this happening to other folks, and it was so nice to have it happen to us. To whoever paid for us, mahalo plenty! — Grateful Makakilo couple
Write to Kokua Line at Honolulu Star-Advertiser, 500 Ala Moana Blvd., Suite 7-500, Honolulu, HI 96813; call 808-529-4773; or email kokualine@staradvertiser.com.
