Taxpayers are leaving $ 1.3 billion in tax refunds on the table. Time is running out to claim it
Samuel Corum / Bloomberg via Getty Images
The IRS is still holding more than $ 1.3 billion in unclaimed tax refunds for those who did not file a tax return in 2017, the agency said on Monday.
The money pot is owed around 1.3 million Americans.
IRS Commissioner Chuck Rettig warned that these taxpayers are running out of time to receive their refunds.
“There is only a three-year window to request these refunds and the window closes on May 17th,” Rettig said in a statement. “We want to help people get these refunds, but we need to file a 2017 tax return quickly.”
More from Personal Finance:
Fourth stimulus checks are not likely. What help could come next
There may still be a way to claim missing $ 1,200 or $ 600 stimulus checks
This ensures you don’t miss any of the $ 1,400 worth of stimulus checks in the mail
If an individual fails to file a tax return within three years, any refund becomes the property of the US Treasury Department. The IRS announced last month that the deadline for filing federal income tax would be extended from April 15, 2021 to May 17, 2021.
The IRS also warned that those who didn’t file a return in 2018 or 2019 may still not receive their 2017 refund. And the refund can be applied to specific debts a person may owe, including a student loan.
Regardless of this, it is worth submitting.
Half of the 2017 tax refunds that were not paid are more than $ 865. Some low- and middle-income workers would be eligible for the Earned Income Tax Credit, which could be worth up to $ 6,318 in 2017.
Instructions on how to file a tax return for previous years can be found on the IRS website.
If you are missing important forms like W-2 or 1099, you can get a copy from your employer, bank, or other income provider. If that fails, you can try ordering a free wage and income log from IRS.gov which has the information you need to submit your return.