Are you aware that there is $1.5 billion worth of tax refunds that have not been claimed in the United States? Numerous people failed to file their 2019 tax forms, missing out on the chance to get sizable refunds.
Fortunately, the Internal Revenue Service (IRS) has extended the deadline until July 17, 2023, giving people time to apply for their refunds.
EITC and Higher Tax Refunds for Low to Moderate Incomes
Let’s examine the Earned Income Tax Credit (EITC), possible returns by state, and why you should ensure your refund in this tale.
This huge sum is the result of roughly 1.5 million Americans failing to file their 2019 tax forms, losing out on potential refunds in the process.
These unclaimed reimbursements are a result of a number of circumstances, such as errors or the negative consequences of the COVID-19 pandemic.
The median average refund for the 2019 tax year was $893, but if a person qualifies for the EITC, they may be able to get much bigger refunds.
Taxpayers typically have three years to file their returns and get refunds.
One noteworthy feature of these unclaimed refunds is the potential for EITC eligibility, an important credit created to help those with low to moderate incomes.
The EITC’s maximum amount for 2019 was $6,557. To increase the amount of your potential refund, you must take the EITC into account when filing for the 2019 tax year.
Read more: Tax Refund Progress: Unraveling The Meaning Of ‘Being Processed’
Offset for Student Loans and Child Support
Additionally, be aware that if you haven’t submitted your tax forms for 2020 and 2021, it can affect your 2019 refund.
If you have unfiled tax returns for later years, the IRS may withhold your refund.
Furthermore, any unpaid sums owed to the IRS or state tax authorities may be deducted from your refund.
It can also be used to pay off past-due government bills like student loans or delinquent child support.
To ensure the quick processing of your refund, it is advised to take care of any unpaid taxes.
Read more: Final Countdown: Last Days To File For Your 2023 Tax Refund