How to Avoid Unclaimed Tax Refunds 2019
According to the Internal Revenue Service (IRS) itself, the IRS has more than billion dollars as unclaimed tax refunds—and that is just for refunds associated with a single tax year. How does this take place? Unclaimed refunds are chiefly caused by one or both of the below-given situations:
- A taxpayer has taxes withheld from his or her paycheck but has income less than the amount essential to entail an income tax return to be filed. Those taxpayers do not file, and thus loses the aptitude to get his federal withholding back. Please note that the amount of a tax refund might even surpass the sum paid via tax withholding if you are qualified for Earned Income Tax Credit.
- The other case is that the taxpayer filed a tax return and a check was mailed but, for due to some reason, mail delivery was not completed and the check was delivered back to IRS. This could be due to an incorrect address or a bad day by your postal service. Other possibilities incorporate your name change, your divorce, or your new residential address.
As there’s no punishment for failing to claim a refund owed to you, there is also time limit as to how much you can wait before you inquire for your funds after filing a tax return.
In general, for returns which have not been filed, you normally have three years from when the return was initially due.
So, you should file your 2018 return by April 15, 2019, to retrieve your tax refund for that year. In addition, to state the apparent, this is your fund we’re talking about, so even if your income is less than the IRS income threshold you should file your taxes even if you:
- Had federal taxes withheld
- Eligible for refundable tax credits like Earned Income Tax Credit
How Can You Avoid an Unclaimed Refund?
- One simple means to avoid an unclaimed refund is to always file your tax returns early in the tax season. While filing a 2015 tax return now in order to get your refund will begin the process of receiving your money, if you were unsuccessful to file the more recent 2013 and 2014 returns, your refund will probably bee held up.
- Another way to ensure that you don’t fail to notice your refund is to circumvent a misdelivered refund check and obtain your tax refund via direct deposit. You can opt for this option within your tax return. You can get your tax refund faster with direct deposit than a paper check. It is also safe and secure as there are no chances of misplacing or getting stolen.
- With an ever-increasing amount of currency at wager, and an escalating amount unclaimed, it has never been more significant to file your tax return every year even if you earn a low income.