The IRS has issued a final warning to taxpayers who haven’t filed for their 2019 tax refunds, saying time is running out before the Treasury seizes the $1.5 billion in overpaid taxes.
The federal tax office announced on Friday that an estimated 1.5 million Americans were eligible for refunds but had not yet filed for them. They have until Monday, July 17 to turn in the required documents.
IRS Tax Filing Deadline Extension
Due to the coronavirus pandemic, the 2019 tax filing deadline was pushed back to the final full calendar year before a national health emergency was declared. The IRS estimated that low and middle-income workers may receive a maximum reimbursement of $6,557, while the average refund for those who have not yet filed was $893.
The highest number of claims, 144,700 people owing a total of $142 million, is projected to come from California, followed by the second-largest number, 135,300 claimants owed a total of $142 million from Texas.
With 6,900 potential claimants, New Hampshire has the greatest median potential refund, at $974. This is followed by $966 in Massachusetts and $959 in West Virginia.
Earned Income Tax Credit Eligibility
In most cases, taxpayers have three years from the date their tax returns were filed to receive their refunds before the money is considered abandoned and reverts back to the Treasury.
However, because of the pandemic, this time frame has been extended until 2019.
If you claim the Earned Income Tax Credit on your tax return for 2019, you could receive a larger refund. Here are the cutoffs in salary:
- The federal poverty line for a family of three or more children is $50,162 ($55,952 if married filing jointly) in 2018.
- For a family of four, the minimum annual income is $46,703 (or $52,493 if filing as a married couple).
- Single parents with one child are eligible for a $41,094 tax credit (or a $46.884 credit if filing jointly).
- $15,570 for singles (or $21,370 for married couples) with no dependents.
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Source: USA TODAY via MSN