The IRS Has $1 Billion in Unclaimed Refunds
If you don't file a tax return, you could be missing out on "free" money
Tax season is your annual reminder that doing your taxes is annoying. However, we highly recommend filing. Not just because of that whole "It's illegal not to file" thing, but because if you don't file you could be missing out on money. Lots of money. According to CNN Money, the IRS is sitting on $1 billion in unclaimed refunds due to people not filing their taxes.
The IRS says that the $1 billion surplus is thanks to about one million households that didn't file a 2011 tax return. By law, if those households don't file by April 15, the government gets to keep the money. People sometimes don't file a tax return because they make such a small amount of money each year. But they could still be entitled to a refund. "People could be missing out on a substantial refund, especially students or part-time workers," IRS Commissioner John Koskinen said in a statement to CNN Money.
Koskinen is likely referring to refundable credits — such as the Earned Income Tax Credit — which pays you even if you have zero income tax liability. If you're one of those households who didn't file in 2011, do it now. Almost half of the 2011 refunds are worth more than $650. That's a big chunk of change to simply ignore.
Article was written by Chris O'Shea and provide by SavvyMoney®.