IRS Owes $1.5 Billion in Unclaimed Refunds From 2018 Tax Returns – Claim Your Money Before the April Deadline
IRS Owes $1.5 Billion in Unclaimed Refunds From 2018 Tax Returns – Claim Your Money Before the April Deadline
The IRS has recently announced that it is withholding almost $1.5 billion in unclaimed income tax refunds. If you are one of the estimated 1.5 million taxpayers who didn't file a federal income tax return for 2018, you may be owed money.
However, you need to act fast. The window for claiming your 2018 refund ends in a few days.
When is the deadline?
The deadline for action on 2018 back taxes is April 18, 2022. If you don’t file a 2018 return before this deadline, you lose your refund.
By law, the IRS offers a 3-year window of opportunity to file a tax return and claim a tax refund. If you fail to file a tax return within that period, your money will become the property of the U.S. Treasury.
How much do I get?
The IRS estimates that the average taxpayer who qualifies for the late refund may receive around $813.
However, the final amount varies from state to state. In South Carolina, the median tax refund is $720, while in New Hampshire the refund could be as high as $920.
The full state-by-state estimate is available on the IRS website.
What if I haven't filed for 2019 and 2020?
Your 2018 tax refund check may be held if you have not filed tax returns for 2019 and 2020. Furthermore, your 2018 refund may be applied to any money owed to the IRS or a state tax agency. It could also be used to offset past due debts such as student loans and unpaid child support.
What else am I missing out on?
Failure to file a 2018 tax return could also mean that you lose out on the Earned Income Tax Credit (EITC).
The EITC is a program that helps out low- and moderate-income individuals and families whose incomes fall below certain thresholds. For tax year 2018, the credit was worth as much as $6,431.
The full EITC table for tax year 2018 is available on the IRS website.
How to file a 2018 tax return in 2022?
2018 tax returns must be filed with the IRS center for your state. The complete list of IRS centers can be found on the last page of the current Form 1040 instructions. If you require help filing a tax return, your best option is to talk to a tax professional.
Make sure to request copies of Forms W-2, 1098, 1099, or 5498 from your employer, bank, or other payers to ensure an accurate return.