It seems a lot of Americans are missing out of some big money, about $1.1 billion to be exact. The IRS announced that there is about $1.1 billion waiting in tax refunds for an estimated 1 million taxpayers who did not file a 2014 federal tax return. To be able to collect the money, these taxpayers must file their 2014 return with the IRS no later than April 17th, 2018.
The IRS has estimated that the average refund these taxpayers are missing out on is $847. IRS Commissioner David Kautter says “We’re trying to connect a million people with their share of $1.1 billion in unclaimed refunds for 2014. Time is running out for people who haven’t filed tax returns to claim their refunds. Students, part-time workers and many others may have overlooked filing for 2014. And there’s no penalty for filing a late return if you’re due a refund.”
For people who did not file in 2014, there is a three-year period in which you have the opportunity to still claim your IRS tax refund. If the money is not claimed after this time, it becomes property of the U.S. Treasury. For 2014 tax returns, the window closes April 17th, 2018.
The IRS does have the right to hold your check if you have not filed for the years in between, 2015 and 2016. Another reason the IRS might hold your check is if you have any prior tax debt that still needs to be paid off, student loans, federal debts, child support, etc.
If you do not file a tax return, you are not only missing out on your tax return but the opportunity to apply for the EITC, Earned Income Tax Credit. For low-to-moderate income families, the credit in 2014 was over $6,000. The EITC helps individuals and families whose incomes are below certain thresholds. The thresholds for 2014 were:
- $46,997 ($52,427 if married filing jointly) for those with three or more qualifying children;
- $43,756 ($49,186 if married filing jointly) for people with two qualifying children;
- $38,511 ($43,941 if married filing jointly) for those with one qualifying child, and;
- $14,590 ($20,020 if married filing jointly) for people without qualifying children.
You can retrieve current and prior tax forms and more information about qualifying for the EITC on the IRS website, IRS.gov or you can call toll-free 800-TAX-FORM (800-829-3676). If you are missing your W-2, 1099, 1099, or 5498 you will need to request these documents from your bank, employer, or independent payer.
If you need help filing your 2014 return or a return from 10 years ago, Polston Tax can help. Our team of tax accountants can look through your income and expenses and file the best return for you. Call us today at 844-841-9857 or click below to schedule your free consultation! And don’t forget, your 2017 federal tax return is due April 17th, get more information here!