$1.5 billion in unclaimed tax refunds are about to expire.  Do not lose
.5 billion in unclaimed tax refunds are about to expire.  Do not lose

Some groups of people are not required to file tax returns every year. For example, single people with a gross income of less than $12,550 don’t have to file their 2021 tax returns this year, and the same goes for retirees who have no taxable retirement income.

However, even if you are part of a group that does not have to file a tax return, it is generally to your advantage to do so. Simply put, people in lower income brackets tend to qualify for valuable tax credits that can result in a large tax refund. In fact, the IRS recently revealed that taxpayers are entitled to $1.5 billion in unclaimed tax refunds starting in the 2018 tax year — and the deadline to claim them is fast approaching. .

WAITING FOR LAST YEAR’S TAX REFUND? HERE IS GOOD NEWS

Wasn’t the 2018 tax deadline three years ago?

You might be wondering why I suggest people file their 2018 tax returns now. After all, the IRS deadline for filing a 2018 tax return came and went in April 2019, and even with extensions, the 2018 returns were due in October of this year.

However, as mentioned in the introduction, some groups are not required to file a tax return if they do not wish to. This primarily includes low-income people and others who have virtually no chance of owing the IRS money for the tax year. And while you technically have to file a tax return if you earn more than the minimum income thresholds, the IRS is unlikely to come knocking on your door if you don’t and are owed a refund. important.

LATE IN THE PRODUCTION OF YOUR TAX DECLARATION? MOVE THIS KEY

In practice, think of the tax deadline as the day the IRS wants the money owed to them – but they’re usually happy to hang on. your money for as long as you allow them.

Under current tax law, US residents have a three-year window after the original due date to file their tax return and claim a refund. So the last day to file a 2018 tax return and claim a refund for that tax year is that year’s tax deadline, which, due to weekends and holidays, falls on Monday 18 April.

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What type of reimbursement are we talking about?

The IRS says the average person entitled to an unclaimed refund in 2018 is entitled to about $800. And it’s fair to say that many people have unclaimed refunds well in excess of that amount.

To name just a few possibilities:

  • If you had income from a job in 2018 but it was less than the amount that required you to file a tax return, you may be eligible for the Earned Income Tax Credit, or EITC, which could be worth up to at $529 (without dependants) or $6,557 (with dependants).
  • If you didn’t file, but were a full-time student in 2018, you could potentially qualify for American Opportunity Credit or Lifetime Learning Credit if you paid tuition (even if you have received student loans).
  • The child tax credit was worth $2,000 for the 2018 tax year per child, and up to $1,400 of the credit can be refunded even if you didn’t owe tax.

I could go on, but you win the point. Ultimately, if you haven’t filed a tax return for 2018, it’s in your best interest to do so, even if you earned little or no income for that year. Gather your income information (you can request a tax transcript from the IRS if you don’t have it) and complete a 2018 tax return form, which can be found here. At this point, you’ll need to mail in your 2018 return, but if you qualify for a refund, you could end up with a pretty big reward for little effort.

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