As of March 25th, 2022, the IRS said there is approximately $1.5 Billion in unclaimed funds owed to around 1.5 Million Americans nationwide. You may be wondering how this could be possible, and more importantly if you are personally owed.
The first thing you must know is that if you are currently owed, you have until the deadline of April 18, 2022 (or October 17th if you received an extension on your 2018 return) to claim these funds or they could possibly be gone forever! However, depending on what state you live, your deadline could be extended.
Where did this $1.5 Billion in unclaimed funds come from? This is all owed to people who have not yet filed their 2018 tax return. By law, you only have three years to claim refunds for a given tax year putting us pretty close to the current deadline for 2018.
Some people do not have to file a tax refund but many others are scared to file due to the worry that they might owe something. Unfortunately, those falling into the second category fail to realize that not filing a tax return could prevent them from receiving many other potential tax credits that could see their tax refund increased or be awarded other stimulus support.
The IRS said they have attempted to reach out to people who have not filed for the last two years to help encourage them to file however many have still not.
If you want to claim what you’re currently owed from the IRS that rightfully belongs to you, then you’ll want to file your 2018 tax refund immediately before the April 18th deadline. If you are having trouble and are in need of help filing your tax return, there is many resources available.
In fact, the IRS offers support like free tax return preparation for eligible taxpayers. There is the Volunteer Income Tax Assistance program (VITA), and Tax Counseling for the Elderly program (TCE). These are free tax preparation services for those who qualify.
The one thing to keep in mind as well is simply filing your 2018 tax return alone won’t be enough unless you have submitted your 2019 and 2020 tax return as well. If sub-sequent years have not been filed, your 2018 refund check will be withheld.
In summary, you may have only a few days to access your 2018 tax refund. The IRS states that currently the average outstanding amount you would receive is $813 which could be quite useful for you at this time depending on your eligibility. Don’t pass up on your unclaimed tax refund, make sure to apply before April 18th.