Author: Edeh Kelechi
The Internal Revenue Service (IRS) has a large amount of money, and part of it might be yours. The IRS owes more than $2 billion in unclaimed tax refunds, and if you’re one of the millions who refuse to file tax returns, you might not be lucky to get your money out if you don’t act on time. This is because the United States Treasury claims all refunds that are not collected within 3 years of filing taxes.Â
Who Is Eligible for a Refund?
You are eligible to receive an income tax refund if you were charged more than your legal tax fee. This usually happens when the advance tax, self-assessment tax paid, and/or TDS deducted from a taxpayer is higher than the total tax liability of the payer’s financial year. However, a due tax refund must be claimed before it elapses three years, or else, it will be permanently retained in the treasury of the United States Government.Â
How Much Will the Refund be?
The IRS owes more than $2 billion in unclaimed tax returns, with the average unclaimed refund being around $825. As a result, yours may be lower or higher than this amount. If you haven’t submitted your refund yet, you can do so now. In addition, you can use your tax return to pay off any debts you owe the government.
Tax refund amount is determined by your income, tax credits, deductions, and Individual Retirement Account (IRA) or 401 (K) contributions. However, if you do not pay your tax completely, you can not be entitled to a tax refund and may owe the IRS. Before you request for a refund, make sure your tax payment is complete.
How To File Your Tax Refund?
1. E-FilingÂ
This is the option preferred by the IRS. Tax refunds can be filed using do-it-yourself (DIY) programs such as TurboTax and H&R Block. When you use this method to file for a tax refund, it takes roughly 3weeks to get your payment from the time the IRS received your refund application. It can be quicker if you request that your refund be deposited directly into your account.
You can also submit your tax returns on the IRS website if your gross annual income is less than $73,000. To do this, go to the IRS website and download either the Fillable Forms or the Guided Tax Preparation form. This option seems to be one of the easiest ways to claim your tax refund.Â
2. MailÂ
This is one of the traditional ways of requesting for a tax refund. However, the processing of your returns take around 6 to 8 weeks if you use this option.
Conclusion
Tax returns can help you protect your credit, improve your social security benefit, seek financial aid, and avoid penalties. Ensure your refund is not more than 3years before you claim it, else, it becomes the property of the United States Treasury.
