Receiving a financial amount from the Internal Revenue Service can be a pleasant surprise. You might need the money for an emergency, wish to pay off some debts, or save. You may want to buy something for yourself that you can’t afford in other ways. However, a large number of tax refunds remain unclaimed each year for various reasons.
Why do tax refunds remain unclaimed?
Millions of income tax refunds go unclaimed. Taxpayers often don’t realize they have a refund coming, so they don’t file a tax return. You may not have filed a tax return due to your income level. You are not required to file a tax return unless you earn an amount that exceeds a specific threshold during the designated tax year.
Who are the owners of unclaimed tax refunds?
There is a wide range of reasons that might lead to not claiming an income tax refund. However, there are some common patterns. Individuals who typically do not claim their refunds from the Internal Revenue Service include:
- Students
- Those who work part-time or only for a limited period and have income taxes withheld
- Self-employed individuals with low earnings who make estimated tax payments but do not file a tax return because their earnings are below the threshold
- Those who do not file a tax return on behalf of a deceased family member who is entitled to a refund
- Those who meet the criteria for the Earned Income Tax Credit (EITC) but do not file a tax return because their earnings are below the threshold
How to claim an unclaimed tax refund
You may want to know if the Internal Revenue Service owes you any money. First, check your records to ensure you filed a tax return for each of the last three years in which you had income. Review your returns from the last three years to make sure they are accurate. Take some time to determine if you qualify for the Earned Income Tax Credit and have not claimed it.
You might still be able to claim your unclaimed refund if you did not file a tax return in any of the last three years. The law gives you three years after the tax return filing deadline (usually April 15) to file your income tax return and claim the refund. You will lose your chance to claim your money if you do not file the return within that period.
You can visit the Internal Revenue Service website or call 1-800-TAX FORM (800-829-3676) to obtain tax returns for previous years. Claiming the refund can be as simple as filing returns for the past three years if you missed a refund or if you qualify for the Earned Income Tax Credit and have not claimed it.
Frequently Asked Questions
What are some other refundable tax credits I can claim if I file a tax return?
Part of the Child Tax Credit is refundable starting from the 2022 tax year. This credit is worth up to $2,000 for each of your qualifying children, but it is also tied to income requirements. You cannot claim it if you earn too little or have no income at all. The refundable portion is 15% of your income exceeding $2,500 starting from the 2022 tax year per child.
What if I filed a tax return and I was entitled to a refund but did not receive it?
You can check the “Where’s My Refund?” tool on the Internal Revenue Service website if you expect a refund and have not received it. Tax refund checks are sent to your last known address if you did not request direct deposit into your bank account. They can be returned to the Internal Revenue Service if you moved and failed to provide your new address to the IRS or the post office. You can update your address online or by submitting Form 8822, which is available online.
Source:
https://www.thebalancemoney.com/does-the-irs-owe-you-money-1289980
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