As is the case each year, millions of taxpayers miss out on getting their money from Uncle Sam, yes, they do. And at times the amount missed out on by these tax payers can be in the thousands of dollars. This is so because for whatever reason, on an annual basis tax paying citizens and resident aliens refuse to file a federal tax refund.
If you are due a tax refund but you fail to file a tax return claiming that refund within three years of the due date, you lose that refund. That is three years from the original due date, usually April 15. So, if a tax payer allows the time to file to claim the refund to run out, the tax refund that would have been received now becomes the property of the US Treasury. In-order to get the money you are due, the tax payer has to file a tax return. It’s very simple, you file for it or you lose it!!!!!
The statistic of the amount of money lost by tax payers due to the non-filing of tax returns is mind boggling. According to the IRS, it has over $1 BILLION for persons who fail to file their tax return in the year 2011. In the year 2012 the amount of tax refunds transferred to the US Treasury due to the non-filing of tax returns by tax payerspayers amounted to over $950 MILLION. However, in 2013 the trend of tax payers not filing their tax return again increased and this resulted in the forfeiture of over $1 BILLION to the US Treasury.
“People across the nation haven’t filed tax returns to claim these refunds, and their window of opportunity is closing soon. Students and many others may not realize they’re due a tax refund. Remember, there’s no penalty for filing a late return if you’re due a refund.”
The IRS reminds taxpayers seeking a 2014 refund that their checks may be held if they have not filed tax returns for 2015 and 2016.
By failing to file a tax return, people stand to lose more than just their refund of taxes withheld or paid during the year. Many low and moderate-income workers may have been eligible for the Earned Income Tax Credit (EITC). For 2017, the credit is worth as much as $6,318. The EITC helps individuals and families whose incomes are below certain thresholds. The thresholds for 2017 are as follows:
Taxpayers who are missing Forms W-2, 1098, 1099 or 5498 for the years 2014, 2015 or 2016 should request copies from their employer, bank or other payer.
As a tax payer you must file a tax return if income earned was above a certain amount. This amount is dependent on the individual tax payer’s situation and takes into consideration the tax payer’s filing status, age and the type of income you received during the tax year. A taxpayer may choose not to file a tax return if not required to do so but you are encouraged to file a tax return even if you had a small amount of income. This is due to the fact that you may be due a refund if you had federal taxes withheld from your income. Also, when in this position, the tax payer may be eligible for tax benefits afforded to low income earners such as the Earned Income Tax Credit which could amount to thousands of dollars in tax refund.
The moral of this blog is simple, tax payers must file a federal tax refund to claim the thousands of dollars that belong to them. IF YOU DON’T CLAIM IT, YOU LOSE IT!!!!!!!!!
IT’S YOUR MONEY. . . BUT YOU HAVE TO FILE A TAX RETURN TO CLAIM IT……AND YOU ONLY HAVE THREE YEARS. SO, GET STARTED…….
The tax payer can start the process by contacting the office of Metro Accounting And Tax Services, CPAs. We’ll be happy to guide you through the income tax filing process, ensuring that you get every penny that belong to you.
User | 26/01/2018