IRS holds $1.5 billion worth of unclaimed refunds. The last day to claim the money is April 18.

The IRS stated that it has unclaimed tax returns of nearly $1.5 billion. It is asking people to take action before April 18 to claim any money due to them.

IRS holds $1.5 billion worth of unclaimed refunds. The last day to claim the money is April 18.

According to the agency, approximately 1.5 million taxpayers didn't file tax returns in 2018. The refunds are only available for three years. Most taxpayers will be able to claim them by April 18, the deadline for federal tax returns. Due to the Patriots' Day holidays in Massachusetts and Maine, people can claim their refunds until April 19, 2022.

The median value for unclaimed tax refunds is $813. This means that half of unclaimed refunds will fall below $813 and half will rise above $813, according to the IRS.

The majority of Americans file their annual tax returns. However, some individuals are not required to do so. These are usually low-income households. For instance, people who earn less than the standard deduction don't need to file a tax return. The standard deduction for the 2021 tax year is $12,550 for single filers, and $25,100 to married couples.

According to an estimatefrom Center on Budget and Policy Priorities, there are 12 million Americans who do not file their annual tax returns. Since many of the federal government’s stimulus programs, from the stimulus checks to advanced Child Tax Credit payments, were based on an individual's tax return, the IRS has tried to reach these non-filers over the past two years.

The U.S. Treasury Department will take back the money if it is not claimed by April 18.

How do I claim a refund?

First, refunds are tied only to those who haven't filed a 2018 return. This means that taxpayers who have already filed for 2018 aren't eligible to claim the unclaimed refunds.

First, you need to understand that in order to claim a refund, you will have to file a 2018 tax return.

Chuck Rettig, IRS commissioner, stated in a statement that "we want to help people receive these refunds but they must file a 2018 tax returns before this critical deadline."

The current Form1040 will require you to submit a paper return to the IRS center. This is organized according to state. For example, taxpayers from Alabama, Georgia, and other Southern states should submit their returns at an IRS office in Kansas City.

The IRS stated in a statement that only tax forms for 2019 or later can be electronically filed.

The paper requirement can be a problem, as the IRS warns that filing paper returns can cause delays in processing. The agency must open these returns by hand. It takes more time to send paper returns. The IRS is encouraging taxpayers file their 2021 returns electronically in order to speed up processing.

Refunds are possible

The IRS warns that anyone who has not claimed refunds for 2018 could have their checks frozen if they don't file tax returns for 2019 or 2020.

The refund will also be applied to any amount the taxpayer owes to the IRS or state tax agency. It could also be used for child support payments, past due federal debts, and student loans.

The IRS stated that low- and moderate-income families could be eligible for larger refunds if the Earned income Tax Credit is applied for. The credit was worth $6,431, according to the IRS. The EITC is also known as the tax credit. It's based on how many children a family has and their filing status.

If they have less than $54,800, married couples can apply for the EITC. For single taxpayers filing jointly with more than three children, the income threshold drops to $49,100.


 

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