You might hear a lot about unclaimed money! But, do you really know what we mean? You could be finding more news about unclaimed money these past few weeks. That is not a happy accident; there is a lot of news about unclaimed money that you should know about. Unclaimed money here, unclaimed money there, it may feel like you have been seeing more news about unclaimed money lately. That’s not a coincidence! Lately, the Internal Revenue Service (IRS) said that there are tax refunds that individuals can receive, amounting up to a total of approximately $1.5 billion.
But, these funds are not available for just everyone and it is not available forever. Instead, individuals are required to claim these tax refunds before April 18th. Even though this deadline passed, individuals aren’t out of luck! That’s because if they received an extension on their 2018 tax return, then the deadline is October 17th. Unfortunately, there are many people who are unaware of where these funds come from or how to claim them. This is why you will definitely find this article helpful. You will find that this article will delve into understanding these unclaimed funds better.
How Did This $1.5 Billion Happen and Where Did It Come From?
You read that figure right, the Internal Revenue Service is talking about tax refunds that you can get with a total of about $1.5 billion. But, where did this money come from? These funds are a result of 1.5 million taxpayers that did not file a tax return in 2018. This is according to the IRS. However, why were most people required to claim this money before April 18th? The reason is because the three year grace period to claim this money is coming to a close. The timeframe to claim the funds from this tax return is a small window. You need to hurry up and claim your return or you might lose it.
Additionally, you should remember to keep in mind that not all taxpayers have the same deadline. If you live in Massachusetts or Maine, then you had until April 19th to claim this money. This is because these particular states celebrate Patriots’ Day. Patriots’ Day is an annual event that commemorates the battles of Concord and Lexington. These battles were some of the first battles to take place at that time of the American Revolutionary War. As for other taxpayers, they could take advantage of the October 17th deadline. But, they need to file a tax extension first.
How Much Can I Receive As a Taxpayer?
As a taxpayer, the amount could vary. It depends on what you are due and how much you owe. But, you can consider looking at the median value as a form of reference. According to the Internal Revenue Service, the median of these unclaimed refunds amount to $813! This means that you can expect the unclaimed refunds to be lower than $813 and the other half could be higher than $813. You have a real chance at receiving a tax refund that amounts more than $813!
Claiming Refunds: How To Do It
If you want to claim your money, then you should think about looking towards your refund. You need to remember that these funds are only applied to individuals that did not file their 2018 taxes. If you already filed your taxes for 2018, then you will not be eligible to receive any refunds. In the case that you did not file, you need to file your 2018 taxes before the April 18th deadline or October 17th deadline. If you find yourself needing assistance in filing your taxes, then you should think about available assistance resources. You will find that the IRS provides support such as, free tax return preparation for qualifying taxpayers. They provide the Volunteer Income Tax Assistance (VITA) option and Tax Counseling for the Elderly (TCE) program. These assistance options can offer basic tax return preparation service, free of charge, to those who are eligible.
Besides these assistance resources you can benefit from getting in touch with a tax professional. There are a variety of places to consider like H&R Block, Turbo Tax, and more. They are easily accessible experts that can help with your specific credit situation. The best part? They can answer questions you have that are relevant to your situation!
When you are filing your tax return, you will need to file a paper return with the IRS center. You can find these centers listed on the final page of the most recent 1040 Form. You should keep in mind that this differs from one state to another. As an example, households that live in the south will have to send their tax returns to a different IRS agency than those who live in northern states. Additionally, you need to remember that 2018 taxes need to be filed with a paper return. But, tax forms for the three following years (2019-2021) can be filed electronically.
A Disadvantage To Paper Filing
One of the disadvantages that come with paper filing is the longer process times. Through paper filing, someone needs to manually handle the return and that could take a lot of time. You can even find that the IRS encourages taxpayers to file their 2021 returns via electronic systems to speed up the process. When you file, you will need to wait to find out how much you will receive. If you do not file your return by the April or October deadline, then the refunds will belong to the United States Treasury Department.
The Final Verdict
If you did not file your 2018 taxes, then you should be careful. This is because the deadline is straight ahead and you need to claim money that is rightfully yours. The IRS stated that the median value for these tax refunds amount to $813. That means that you can expect to have a change of getting less or more than the $813 amount. If you are considering the idea of claiming the funds that you rightfully own, then you still have a chance to get it. To receive these refunds, you will need to file your 2018 taxes. Good luck to you!