SC taxpayers have $12.5M to claim, IRS says. Here’s how to get your portion before it’s too late
Time is running out for thousands of South Carolinians to get their share of $12.5 million in unclaimed refunds, the IRS says.
The federal agency announced Monday that 11,900 South Carolina residents had yet to file their 2020 federal tax returns and claim the refunds they’re owed. The average median refund for South Carolinians is $840 for 2020, the IRS states.
The IRS wants to reassure taxpayers that there is no penalty for claiming a refund on a late-filed tax return. However, the agency warns that people only have until May 17 to file those late 2020 returns to claim their refunds. Any refunds from 2020 left unclaimed after the deadline will be added to the U.S. Treasury.
“People faced extremely unusual situations during the pandemic, which may have led some people to forget about a potential refund on their 2020 tax returns,” IRS Commissioner Danny Werfel said in a press release. “People may have just overlooked these, including students, part-time workers and others. Some people may not realize they may be owed a refund. We encourage people to review their files and start gathering records now, so they don’t run the risk of missing the May deadline.”
How to get your SC 2020 refund
To request an unclaimed refund, South Carolinians who haven’t filed a 2020 tax return will need to do so. And while 2020 was four years ago, there are ways to gather the necessary information to file the needed tax return. Below are some options, according to the IRS.
- Request copies of key documents: 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.
- Use Get Transcript Online at IRS.gov: Taxpayers who are unable to get those missing forms from their employer or other payers can order a free wage and income transcript at IRS.gov using the Get Transcript Online tool. For many taxpayers, this is by far the quickest and easiest option.
- Request a transcript: Another option is for people to file Form 4506-T with the IRS to request a “wage and income transcript.” A wage and income transcript shows data from information returns received by the IRS, such as Forms W-2, 1099, 1098, Form 5498 and IRA contribution information. Taxpayers can use the information from the transcript to file their tax return. But plan ahead – these written requests can take several weeks. People are strongly urged to try the other options first.
More money owed to SC taxpayers
The IRS notes that there are also approximately 85,000 South Carolina taxpayers who never claimed the 2020 or 2021 COVID-era stimulus payments.
The first payment was issued between March and April 2020 and gave up to $1,200 per eligible adult and up to $500 for each qualifying independent. The second payment was given in December 2020 and provided up to $600 per eligible person.
A third stimulus payment was distributed between March and April 2021 and gave up to $1,400 per eligible person.
People can check if they received any COVID-era stimulus checks by creating an IRS Online Account.
This story was originally published March 28, 2024 at 6:00 AM.
