Monday, April 02, 2012

$1 Billion in Unclaimed Income Tax Refunds

Did you know that according to the Internal Revenue Service, there are still unclaimed refunds for those who did not file 2008 tax returns? With approximately seventy-five percent of tax returns resulting in a refund, Jackson Hewitt Tax Service reminds the one million taxpayers who haven’t filed a 2008 tax return that the time to act is now – before the window of opportunity closes on April 17, 2012.


“The IRS offers a three-year window for filing a federal tax return, and for the 2008 tax year, the cut-off date is coming soon,” explained Mark Steber, chief tax officer at Jackson Hewitt Tax Service. “Approximately half of the refunds available are for $637 or more, so it’s wise to spend the time filing for 2008 now, as you are tackling this year’s preparation and filing.”

There are several reasons why a taxpayer may have neglected to file, including having too little income to require filing. However, even if someone’s income was too low, they likely had money withheld from their employment that is now available to them as a refund. In addition to receiving money that was withheld, filing a 2008 tax return also allows those who are eligible to claim certain credits, such as the Recovery Rebate Credit, the First-Time Homebuyer Credit or the Earned Income Tax Credit.

To claim a 2008 refund, taxpayers must have filed for the 2009 and 2010 tax years. Taxpayers will not incur any late filing penalty and will be able to receive their refund if they file a return by April 17, 2012.

“Remember, this is your money, so be sure to file your return and claim your refund,” explained Mr. Steber. “Otherwise, it becomes the property of the U.S. Treasury.”
 
Unclaimed income tax returns, and how to claim them, are your Warrendale Tip of the Week.
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