The Internal Revenue Service warned Tuesday that over 116,000 California residents could be leaving nearly $922 million in unclaimed tax refunds on the table as a critical filing deadline approaches.
The clock is ticking for those who failed to file their 2021 federal tax returns: April 15 is the deadline for claiming refunds before the funds are returned to the US Treasury.
According to the IRS, the median refund for California taxpayers who have yet to file their 2021 federal returns is $600, though actual amounts may differ.
“By missing out on filing a tax return, people stand to lose more than just their refund of taxes withheld or paid during 2021,” said the agency in a statement. “Many low- and moderate-income workers may be eligible for the Earned Income Tax Credit,” which could total up to $6,728 for eligible taxpayers with children.
The IRS has set the EITC income thresholds for the 2021 tax year as follows: $51,464 for individuals with three or more qualifying children, $47,915 for those with two, and $42,158 for those with one.
Individuals without qualifying children were eligible for the EITC up to $21,430.
According to the IRS, there is usually no penalty for failing to file a tax return if you are eligible for a refund.
According to the law, taxpayers have three years to file and claim their refunds. If they fail to comply within that time frame, the refund money is forfeited to the Treasury.
In total, 1.1 million Americans risk losing more than $1 billion in unclaimed refunds from the 2021 tax year.
If you are eligible for these refunds, the IRS recommends filing your 2021 tax return because any unpaid federal debts, such as student loans or child support, may be deducted from the refund.
Taxpayers can request missing documents from their employers, such as Forms W-2, 1099, or 5498, or access tax records through the IRS’s Individual Online Account.
For those who are unable to use the online tools, the IRS also provides a mail request option.
