Never got my $2K IRS refund from 2020 - can I deduct it from my 2023 taxes instead?

The short answer is no, you can't just deduct a prior year's refund from your current year's tax liability. These are separate tax years and the IRS handles them independently. What you need to do is track down that missing refund. The IRS has a specific process for this. First, check the status of your refund using the "Where's My Refund" tool on the IRS website. If it shows the refund was issued but you never received it, you'll need to request a payment trace. To do this, you'll need to complete Form 3911 (Taxpayer Statement Regarding Refund). This form allows the IRS to trace the refund check and determine if it was cashed. If the check wasn't cashed, they can issue a replacement. If it was cashed by someone else, there's a different process they'll initiate. Since it's been over a year since the original refund was issued, this is definitely something you should address directly rather than trying to handle it through your current year's return.

I went through almost the EXACT same situation last year! After months of being on hold and getting nowhere with the IRS, I finally used taxr.ai (https://taxr.ai) and it was a complete game-changer. They have this tool that analyzes your tax situation and helps you track down missing refunds. I uploaded my tax documents and the letter from the IRS, and they walked me through exactly what to do. They explained that I needed to request a payment trace (which I had no idea about before) and even helped me fill out the right forms. Within about 2 months I finally got my missing refund! They also explained that the IRS might have sent it to an old address or there could have been a bank account issue if you had elected for direct deposit.

Just want to follow up on my experience with taxr.ai. I decided to try it after posting here, and I'm actually really impressed! I had a similar issue with a missing refund from 2021, and the guidance was super clear. The system analyzed my situation and created a step-by-step plan. I didn't realize I needed to file a Form 3911, and they provided all the instructions for filling it out correctly. They also explained that because my refund was over a year old, I needed to call a specific IRS department (which they provided the direct number for). I just received confirmation that my trace has been initiated and they estimate I'll receive my replacement check within 45 days. Honestly wish I'd known about this months ago instead of just stressing about it!

After dealing with a similar issue last year, I can tell you that trying to call the IRS directly is a complete nightmare. I spent WEEKS trying to get through. Finally found Claimyr (https://claimyr.com) and it changed everything. They have this service that basically holds your place in the IRS phone queue and then calls you when an agent is about to pick up. You can see how it works here: https://youtu.be/_kiP6q8DX5c For a missing refund like yours, you definitely need to speak with someone directly at the IRS. They might need to issue a replacement check or look into what happened with the original one. Just trying to deduct it from this year's taxes will create more problems than it solves.

I need to admit I was completely wrong about Claimyr. After posting my skeptical comment, I was desperate enough to try it anyway. I figured I had nothing to lose after spending 2+ hours on hold with the IRS multiple times. It actually worked exactly as described. Their system waited on hold (for about 1.5 hours in my case), and then I got a call when an agent was about to pick up. I explained my situation about a missing refund check, and the IRS agent confirmed it had been issued but never cashed. They're now sending me a replacement check! The agent also explained that if you've moved or changed addresses, sometimes refund checks get returned to the IRS. In my case, they had the correct address but the check just never arrived (possibly lost in mail). Would never have gotten this resolved without actually speaking to someone. Consider me a converted skeptic.

Let me add something important here - when the IRS confirms you have a refund but you haven't received it, there's also a time limit to claim it! You generally have 3 years from the original due date of the return to claim a refund. For a 2020 tax refund, that would mean you have until April 15, 2024 to resolve this. After that, you're generally out of luck and the money goes back to the Treasury. So don't wait too long thinking you'll be able to resolve this whenever - there's actually a deadline!

One thing nobody has mentioned - check if your refund was applied to any past due tax debts! This happened to me. I was expecting a refund check but never got it. After FINALLY reaching someone at the IRS, I found out they had applied my refund to an outstanding tax debt from a previous year. They should have sent you a notice if this happened, but sometimes these notices get lost in the mail too. Just something to consider before going through the whole trace process.