Are you aware that there is a substantial amount of unclaimed tax refunds in the United States, totaling $1.5 billion? Many individuals have neglected to file their 2019 tax returns, resulting in missed opportunities to receive significant refunds. However, there is good news: the Internal Revenue Service (IRS) has extended the deadline until July 17, 2023, providing individuals with the opportunity to claim their refunds. Let's explore in this story the Earned Income Tax Credit (EITC), potential refunds by state and why you need to secure your refund.
Unclaimed Refunds: $1.5 Billion at Stake
This substantial sum is the result of nearly 1.5 million people in the United States neglecting to file their 2019 tax returns, thereby missing out on potential refunds. Various factors contribute to the existence of these unclaimed refunds, including oversights or the adverse effects of the COVID-19 pandemic. While the median average refund for the 2019 tax year was $893, certain individuals may be eligible for even larger refunds if they meet the requirements for the EITC.
Deadline Extension
Typically, taxpayers have a three-year window to file their tax returns and claim refunds. However, the deadline for 2019 tax returns has been extended till July 17, 2023. It is crucial to note that the tax return must be correctly addressed, mailed, and postmarked to be eligible for the refund.
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Maximize Your Benefits with the Earned Income Tax Credit (EITC)
One notable aspect of these unclaimed refunds is the potential eligibility for the EITC, a valuable credit designed to assist individuals with low to moderate incomes. In 2019, the maximum value of the EITC was $6,557. Considering the EITC when filing for the 2019 tax year is essential to maximize your potential refund.
Potential Refunds by State
Here are the top 10 states, along with the respective number of potentially eligible individuals and their average median refunds:
Texas: 135,300 individuals, with an average median refund of $924.
California: 144,700 individuals, with an average median refund of $856.
Florida: 89,300 individuals, with an average median refund of $893.
New York: 81,600 individuals, with an average median refund of $945.
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Illinois: 55,800 individuals, with an average median refund of $916.
Pennsylvania: 56,000 individuals, with an average median refund of $924.
Ohio: 51,800 individuals, with an average median refund of $868.
Michigan: 48,500 individuals, with an average median refund of $888.
Georgia: 48,000 individuals, with an average median refund of $826.
Washington: 45,800 individuals, with an average median refund of $934.
Approaches for Obtaining Required Documents
If you have yet to submit your 2019 tax return and are missing important documents such as Forms W-2, 1098, 1099, or 5498, there are few methods you can use to obtain the necessary information.
You can request copies of these forms from your employer, bank, or relevant parties.
Another option is to utilize online resources provided by the IRS, like Get Transcript Online, which allows taxpayers to order a wage and income transcript free of charge. This transcript contains the essential data from information returns received by the IRS, including Forms W-2, 1099, 1098, and IRA contribution information.
Additionally, be aware that your 2019 refund may be impacted if you have not filed tax returns for 2020 and 2021. The IRS may withhold your refund if you have outstanding tax returns for subsequent years. Furthermore, your refund can be applied to any outstanding amounts owed to the IRS or state tax agencies. It may also be utilized to offset unpaid child support or past-due federal debts, such as student loans. Therefore, addressing any outstanding tax obligations is advisable to ensure the smooth processing of your refund.
