IRS Might Owe You Money: Here’s How to Claim Your Refund
Income tax season may seem like a distant memory, but what if I told you the IRS could be holding on to tens of millions of dollars in unclaimed refunds for Alabama taxpayers? Yes, it’s true! If you’re one of those individuals, don’t worry—it’s not too late to claim your hard-earned cash. Let’s dive into how you can check if you’re owed money and ensure you secure your refund.
Understanding the IRS Refund Landscape
Why You Might Be Owed Money
Here’s the key takeaway: If you owe the IRS money and don’t file a return, you may face penalties. However, if you have a refund coming but haven’t filed, there are no penalties—aside from missing out on your refund! Sounds unfair, right? Fortunately, the IRS offers a lifeline.
The Three-Year Rule: Don’t Lose Out
Did you know you have three years from the original due date to file a return and claim your overdue refund? This means if you missed filing for 2023, you still have time to retrieve those funds!
The Staggering Amount of Unclaimed Refunds
In a recent announcement, the IRS revealed it is sitting on over a billion dollars in unclaimed refunds, primarily due to taxpayers not having filed their 2023 returns. In Alabama alone, an estimated 18,100 individuals risk forfeiting over $16 million in potential refunds, with the average refund amounting to $743! In addition to this, refundable tax credits, such as the Earned Income Tax Credit or COVID-era Recovery Rebate Credits, could further boost your refund.
What You Need to Know Now
Missed the April Deadline? No Problem!
While April has passed and some funds may no longer be available, if you haven’t filed your 2022, 2023, or 2024 tax return and could qualify for a refund, you can still file! According to the IRS, “there is no penalty for claiming a refund on a late-filed tax return.” So what are you waiting for?
Gathering Your Tax Documents
Preparing your return may require some effort, but getting your documentation straight will pave the way for a hassle-free filing experience. Here’s what you need to do:
Create or Access Your IRS Online Account: Go to the IRS Online Account for Individuals to access Forms W-2, 1095-A, and 1099-NEC. You can also check important details from your most recent tax return, such as your adjusted gross income.
Request Missing Forms: If you’re missing Forms W-2, 1098, 1099, or 5498 for 2023, 2022, or 2023, reach out to your employer, bank, or other payers for copies.
Download Necessary Tax Forms: Access tax year 2023 Forms 1040 and 1040-SR along with instructions on the IRS Forms, Instructions, and Publications Page or by calling 800-TAX-FORM (800-829-3676).
- Determine Filing Requirement: Unsure if you need to file? Use the IRS Do I Need to File a Tax Return? tool for guidance.
Other Reasons You Might Miss Out
Not filing isn’t the sole reason taxpayers miss refunds. Technical glitches, a lost check in the mail, or incomplete information could be culprits as well. If you’ve sent in your return but haven’t received your refund yet, don’t fret!
Tracking Your Refund
If you’re anxious about the status of your refund, the IRS has your back! Use the “Where’s My Refund?” page to see if your return was received and whether your refund has been issued. For this, you’ll need:
- Your Social Security or Individual Taxpayer ID number (ITIN).
- Your filing status.
- The exact refund amount specified on your return.
Important Note: Avoid Filing Again
Filing a second return can complicate matters. The advice is clear—don’t refile unless you’re due a refund, have been waiting longer than six months, and the tracking page shows your return wasn’t received.
Conclusion: Your Refund Awaits!
Don’t let your hard-earned money slip through the cracks! Whether through missed filings or simple oversights, thousands of taxpayers might be leaving cash on the table. There’s still time to claim what’s rightfully yours, so take action now to ensure you don’t lose out on a refund that could make a significant difference in your financial situation.
Reach out to the IRS or consult with a tax professional if you have questions or need assistance. Your refund is waiting—go claim it!
