Time is running out for millions to file 2019 tax returns and claim refunds

It’s not too late for the 1.5 million taxpayers with unclaimed 2019 refunds. But time is running out - the deadline for 2019 tax returns is July 17, 2023. 

Extended filing deadline for 2019 tax refunds 

Taxpayers usually have three years to file and claim their tax refunds, making the three-year deadline for filing 2019 returns to claim a refund in 2022. However, the IRS postponed the deadline to July 17, 2023, due to the COVID-19 pandemic.  

While taxpayers still have time to claim valuable family tax and other credits, tax pros should note: time is of the essence, as the deadline is fast approaching.  

Child Tax Credit 

Taxpayers who claim at least one child as their dependent on their tax return may be eligible for the Child Tax Credit. Tax pros and taxpayers can check details about claiming this credit on a 2019 tax return.  

Requirements to claim this credit include:  

• The child must be younger than 17 on the last day of the tax year, generally Dec 31. 
• The child must be the taxpayer’s son, daughter, stepchild, foster or adopted child, brother, sister, stepbrother, stepsister, half-brother or half-sister. An adopted child includes a child lawfully placed with them for legal adoption. They can also include grandchildren, nieces or nephews. 
• The child must have not provided more than half of their own support for the year. 
• The taxpayer must claim the child as their dependent on their federal tax return. 
• The child cannot file a tax return for the same year with the status married filing jointly unless the only reason they are filing is to claim a refund. 
• The child must be a U.S. citizen, a U.S. national, or a U.S. resident alien. 
• In most cases, the child must have lived with the taxpayer for more than half of 2019. 

Additional details for determining if a child qualifies for this credit can be found on the IRS website.  

Child and Dependent Care Credit 

If taxpayers paid someone to take care of their children or another member of their household while they worked in 2019, they may qualify for the Child and Dependent Care Credit regardless of their income. Taxpayers who pay for daycare expenses may be eligible to claim up to 35% of their daycare expenses with certain limits.  

Earned Income Tax Credit eligibility for 2019 

Millions of individuals with earned income may be eligible for the EITC, which is a credit that assists individuals whose incomes were below certain levels. For 2019, the credit is worth as much as $6,557. Many low- and moderate-income workers could miss out on the EITC if they don’t file their 2019 tax return by July 17, 2023. 

IRS may withhold refunds in certain cases 

The IRS may hold a 2019 tax refund check if the taxpayer hasn’t filed tax returns for 2020 and 2021, and it may apply refunds to:  

• Outstanding federal or state tax bills 
• Unpaid child support 
• Past due federal debts such as student loans 

Tax pros take note 

If your taxpayer clients haven’t filed for returns for 2020 and 2021, the IRS will hold onto any refunds due for 2019. It’s important that you work with your clients to complete and file their unfiled 2020 and 2021 returns at the same time or shortly after the 2019 returns are filed. 

What if necessary financial documents are unavailable?

If required financial information is unavailable from employers, banks or other payers, they may be obtained by requesting a wage and income transcript from the IRS. 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. This information from the transcript may be used to file their tax returns. 

The fastest and easiest way to get a transcript is with IRS Get Transcript Online. Tax pros with proper authority and taxpayers can also file Form 4506-T, Request for Transcript of Tax Return.  

But, with time running out to file 2019 returns, this approach is not recommended since these written requests can take several weeks to process, particularly given the ongoing paper processing backlogs at the agency.