Tips For Getting Back Your Unclaimed And Undelivered Tax Refunds

No one that earns a living is exempt from having to pay their taxes. There is an old saying that speaks of nothing in life is certain except for death and taxes. There are those that are lucky each year to be able to get a tax refund for overpaying throughout the year from their earnings. However, some people fail to even file their taxes and end up missing out on claiming the refund that they are due.

Filing your taxes is a simple step that many fail to complete and doing so ends up leaving the government with billions of dollars left in their possession from unclaimed tax refunds. While so many people fail to file their taxes during tax season, there are still ways to go about getting the money that you are owed at a later date. Below are some of the steps to get you started.

Unclaimed Tax Refunds

If you don't make over a certain amount of money during the year, you may not be required to file a tax return at all. Even so, if you made some money through a job in which some federal income tax was withheld from your paychecks, you could still be owed some money back as a refund for overpaying. Additionally, if you didn't have any income come out of your salary for income tax, you may still be able to get a refund because of the Earned Income Tax Credit. However, to be able to get a refund for these specific cases, you will need to file during the tax year in which you qualify for the credit or refund.

One of the main reasons why lots of people decide not to file at all is because of the fear that they will have to pay some penalties if they made too much money or filed too late. While there are some fines for people that file late tax returns in certain cases, it is generally not the case for filers who are owed a refund.

Time Is An Important Factor For Claiming Your Refund

While the IRS has collected billions in unclaimed tax returns, they can't keep the money forever in hopes that it will get claimed. They eventually have to turn over unclaimed funds to the U.S. Treasury after three years of being unclaimed. This is why it is important to act fast in trying to claim any money you feel you are owed. You have three years to file your taxes from the year you are filing for.

How Much Can My Unclaimed Taxes Be?

The amount you are owed in a refund from filing your taxes will be dependent on a variety of different factors. It is not possible to know exactly how much you could be owed without filing your return in full. However, the IRS does estimate that the amount of money per filer that goes unclaimed is around $750. Some refund checks that are unclaimed are much higher and some may be lower. If you have skipped filing a tax return in the last few years, you could possibly be missing out on thousands in tax return money you are owed. The only way to know for sure how much you are owed by the IRS in refund money is to file any returns that you missed before the three year expiration is up.

What If I Didn't Receive My Refund?

Aside from the billions that the IRS has in unclaimed funds from people not filing taxes, they also have huge amounts of refunds that are undelivered. While most people have no problem getting their refunds with no issues through direct deposit into their checking accounts, some people still opt to receive their refunds by check through the mail. This leads to many refunds not being delivered. When you choose to have your refund delivered by mail, the IRS will send it to your last known mailing address. This means that if someone moves and doesn't provide the postal service with a formal address change, the refund could get sent to the wrong address or end up back with the IRS.

The IRS tax system is set up the way it is for specific reasons. You are meant to get any money owed to you if you file your tax return. No citizen should be afraid to file their tax return for fear of getting a penalty. It is always important to take proper action to claim the refund you are owed before time runs out.






Featured Articles

Saving Money with the Home Affordable Refinance Program (HARP)

The Home Affordable Refinancing Program, or HARP, is a government program designed to provide relief to homeowners who have high-interest rate mortgages or who are underwater on their mortgage. Those who qualify a...

Read More

Rising Home Prices lead to many ARM Applications

Home prices are on the rise, and potential buyers are getting creative with ways to finance their home purchases. According to research firm Inside Mortgage Finance, the number of adjustable-rate mortgage (ARM) originations ros...

Read More

Important Facts About FHA Mortgages

If you have poor credit, an FHA mortgage could be the best option for you. These loans are backed by the government and insured under the Federal Housing Administration. If a lender has been approved by the FHA to issue insured FHA mortgage...

Read More

20% Down Payment Myth When Buying Your Home

Many consumers believe the American dream is unachievable for them because they haven’t the 20% down payment necessary to purchase a home. While the wisest financial decision you can make when buying a home is putting money down, ...

Read More
VIEW ALL ARTICLES