The IRS has informed that unclaimed income tax refunds worth more than $1.3 billion await an estimated 1.3 million taxpayers who did not file a 2017 Form 1040 federal income tax return. If this is your case, you need to act fast.
Generally, after the three-year window closes, the IRS can neither send a refund for the specific tax year nor apply any credits, including overpayments of estimated or withholding taxes, to other tax years that are underpaid. The window closes on May 17, and this is why you have very little time left to file a tax return and receive the money.
This means that many people may lose out on a tax refund if they don’t act fast, simply because they did not file a federal income tax return. Is this your case?
According to the IRS website, taxpayers may not file because they didn’t earn enough money to be required to file, but those who had federal taxes withheld by their employer may be eligible for a refund of those taxes.
Also, even if they aren’t required to file, they may qualify for benefits like the Earned Income Tax Credit.
To get the money you must file a tax return.
“The IRS wants to help taxpayers who are due refunds but haven't filed their 2017 tax returns yet," said IRS Commissioner Chuck Rettig.
"Time is quickly running out for these taxpayers. There's only a three-year window to claim these refunds, and the window closes on May 17. We want to help people get these refunds, but they will need to quickly file a 2017 tax return."
In addition, failing to file a tax return, people stand to lose more than just their refund of taxes withheld or paid during 2017. Many low- and moderate-income workers may be eligible for the Earned Income Tax Credit (EITC).
The thresholds for 2017 were:
• $48,340 ($53,930 if married filing jointly) for those with three or more qualifying children;
• $45,007 ($50,597 if married filing jointly) for people with two qualifying children;
• $39,617 ($45,207 if married filing jointly) for those with one qualifying child, and;
• $15,010 ($20,600 if married filing jointly) for people without qualifying children.
Current and prior-year tax forms and instructions are available on the IRS.gov Forms and Publications page or by calling toll-free 800-TAX-FORM (800-829-3676).