WHAT YOU NEED TO KNOW:
- Millions of Americans don’t file their taxes every year due to several reasons.
- Some are afraid to be caught that they owe money to the IRS that they can’t pay, or because they think their income is below the threshold required to file.
- If you fail to file taxes in 2014, there are some details that you need to know.
The IRS has $1.1 billion of federal income tax refunds that Americans failed to claim in 2014. There were about one million taxpayers who didn’t file their returns in 2014 and the money belongs to them. The IRS also says that about half of the refunds are for over $847.
The IRS announced this notification because time is running out for Americans to claim their refunds. In general, people only have three years to file a past return. After that, their refund money becomes the property of the U.S. Treasury. The last day for Americans to file their 2014 returns is on April 17, 2018.
Failure in filing federal returns differs by state. In Texas, $122 million of federal income tax refunds is left unclaimed because 108,000 Texans didn’t file a tax return in 2014. In Vermont, 27,000 people did not file their return in 2014, leaving behind about $2 million to the state.
These are the things to consider if this notice applies to you. If you file your 2014 return but failed to file tour 2015 and 2016 returns, then your 2014 refund will be held. If you fail to pay for child support or you have past due debts, such as student loans, the IRS will deduct those fees from your refund.
In 2014 the tax credit was worth as much as $6,143. That means filing a past return could be lucrative if your income was below a certain threshold. The Earned Income Tax Credit (EITC) is designed to help low- and moderate-income families. A single person with three or more kids could qualify for the EITC if their 2014 income is below $46,997.
Appropriate forms for filing an old tax return can be found on the IRS documents page. You can also request copies from your employer or bank for old income forms (W2, 1098 or 1099). A free wage and income transcript can also be ordered from IRS.gov using the Get Transcript Online tool.
All 2014 returns must be mailed and postmarked by April 17, 2018.