- Days left

$1.1 Billion in Unclaimed Tax Refunds -- Could Some Be Yours?

Unclaimed government moneyThe IRS has announced that there is $1.1 billion in previous unclaimed tax refunds waiting for nearly 1.1 million people who did not file a federal income tax return for 2007. The IRS estimates that half of these potential 2007 refunds amount to at least $640.To get your money, you have to be proactive. The IRS won't send you a tax refund if you haven't filed a federal income tax return. Many taxpayers may not realize that they might qualify for a refund because they erroneously believe that they did not make enough money. However, some taxpayers may be eligible for refundable credits.

A popular -- but still underutilized -- refundable credit is the Earned Income Tax Credit (EITC). The EITC helps individuals and families whose incomes are below certain thresholds, which in 2007 were $39,783 for those with two or more children, $35,241 for people with one child, and $14,590 for those with no children.

Other credits may also apply, such as the Making Work Pay Credit. The Making Work Pay Credit offers a flat credit of up to $400 for individual taxpayers and up to $800 for taxpayers who are married but filing jointly.

Refunds may also be due to taxpayers who might have too much withholding. This can happen when taxpayers claim too few exemptions on their form W-9. Form W-9 can be particularly confusing for taxpayers with more than one job or for married couples who both work.

If you're not sure whether you would be eligible for a refund, consider filing a return. If it turns out that you're due a refund, there's no penalty for filing late. Of course, remember that your 2007 refund will be held if you have not filed federal income tax returns for 2008 and 2009. Your refund may also be held if you're subject to offset for unpaid taxes, child support or federal debts.

The last day to file and receive a refund for 2007 is April 18, 2011. After that date, any unclaimed money will be returned to the U.S. Treasury.

Increase your money and finance knowledge from home

Goal Setting

Want to succeed? Then you need goals!

View Course »

Advice for Recent College Grads

Prepare yourself for the "real world".

View Course »

TurboTax Articles

What is IRS Form 8824: Like-Kind Exchange

Ordinarily, when you sell something for more than what you paid to get it, you have a capital gain; when you sell it for less than what you paid, you have a capital loss. Both can affect your taxes. But if you immediately buy a similar property to replace the one you sold, the tax code calls that a "like-kind exchange," and it lets you delay some or all of the tax effects. The Internal Revenue Service (IRS) uses Form 8824 for like-kind exchanges.

What are ABLE Accounts? Tax Benefits Explained

Achieving a Better Life Experience (ABLE) accounts allow the families of disabled young people to set aside money for their care in a way that earns special tax benefits. ABLE accounts work much like the so-called 529 accounts that families can use to save money for education; in fact, an ABLE account is really a special kind of 529.

What is IRS Form 8829: Expenses for Business Use of Your Home

One of the many benefits of working at home is that you can deduct legitimate expenses from your taxes. The downside is that since home office tax deductions are so easily abused, the Internal Revenue Service (IRS) tends to scrutinize them more closely than other parts of your tax return. However, if you are able to substantiate your home office deductions, you shouldn't be afraid to claim them. IRS Form 8829 helps you determine what you can and cannot claim.

What is IRS Form 8859: Carryforward of D.C. First-Time Homebuyer Credit

Form 8859 is a tax form that will never be used by the majority of taxpayers. However, if you live in the District of Columbia (D.C.), it could be the key to saving thousands of dollars on your taxes. While many first-time home purchasers in D.C. are entitled to a federal tax credit, Form 8859 calculates the amount of carry-forward credit you can use in future years, not the amount of your initial tax credit.

What is IRS Form 8379: Injured Spouse Allocation

The Internal Revenue Service (IRS) has the power to seize income tax refunds when a taxpayer owes certain debts, such as unpaid taxes or overdue child support. Sometimes, a married couple's joint tax refund will be seized because of a debt for which only one spouse is responsible. When that happens, the other spouse is said to be "injured" and can file Form 8379 to get at least some of the refund.

Add a Comment

*0 / 3000 Character Maximum

1 Comment

Filter by:
Robert Wheeler

"The funny thing about MONEY is...
when it’s owed to you,
NOBODY’S gonna call you when THEY have IT!!” (anonymous)
WELL, I just did!!
PLEASE allow me to search the databases for YOU.
Enter your name and your state on my email...
refund-finders@hotmail.com
you just never know what I may find for YOU!!!

July 01 2013 at 6:28 PM Report abuse rate up rate down Reply