Taxpayers who failed to file their 2018 returns may owe the Internal Revenue Service hundreds of dollars; however, the deadline to collect that money is quickly approaching.
Approximately 1.5 million filers have not yet submitted their 2018 tax returns, and the Internal Revenue Service estimates that it is holding on to nearly $1.5 billion in unclaimed refund money. The average tax refund is more than $800, according to the IRS.
The Internal Revenue Service, on the other hand, is not going to hand over that money on the spot. It is necessary to file back taxes in order to receive a refund if the agency owes you money from a previous tax year.
“People must take immediate action,” IRS Commissioner Chuck Rettig said in a statement. This year’s April tax deadline will bring the three-year window for claiming these returns to an end, according to the law.”
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Taxes are due on April 18 this year for the majority of people due to a holiday recognized in Washington, D.C. Back taxes for 2018 must be sent by your tax due date in order to be considered timely.
If you miss the deadline, your unclaimed refund will be forfeited. According to the Internal Revenue Service, it “becomes property of the United States Treasury.”
Those overall data were accompanied by a breakdown of the number of residents who haven’t filed 2018 taxes by state, as well as the total amount of tax refunds received by each state and the median amount of refund received by each state.
As may be predicted, the most populated states have the highest proportion of people who haven’t submitted their tax returns. Residents of numerous smaller states, on the other hand, maybe miss out on the largest individual refunds available.
The following are the states with the greatest median tax refunds that have yet to be claimed:
Alaskan residents pay $969.
New Hampshire’s rate is $920.
Wyoming’s share is $912
Massachusetts’s share is $908
$896 in New York City
Idaho had the lowest median refund of $686, which was the lowest in the country.
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How to claim your tax refund for the year 2018
It is likely that you will have to physically send your return in order to receive your refund because the IRS’s e-file option is only available for returns filed in 2019 and after.
To claim your refund, you must first file back taxes for 2018. The same is true for electronic filing through various tax software firms, which may not be available for 2018 tax returns.
What you need to do is as follows:
Obtain details about your earnings. First and foremost, you’ll want to take stock of the documents you now have and those that are lacking for 2018.
Depending on the type of income you got that year, the specific documentation required will differ.
W-2s are normally issued for employee compensation; 1099-MISCs or 1099-NECs are issued if you performed gig or contract work; and 1099-INTs and 1099-DIVs are issued for interest and dividend income, respectively.
In order to obtain any missing income information, you should request a copy of your tax transcript. If life circumstances prevented you from filing your 2018 tax return, it’s possible that you misplaced or lost your tax information for that year.
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This is an optional step. Don’t be concerned. This information is compiled by the IRS and is included on your tax transcript. If you want to request a wage and income transcript, you can do so by creating or logging into your IRS account online.
The transcript will contain the W-2 or 1099 information you need to complete your tax return.
Complete your tax return by using the appropriate forms. Maintain accuracy when filing your past taxes by completing the correct year’s form on each occasion.
You may require Forms 1040, 1040-A, or 1040-EZ for the tax year 2018. These can be found in the IRS’s form archive, which can be searched.
Returns should be mailed to the appropriate IRS facility. Once you’ve completed your 2018 tax return, you may be required to physically mail it to the Internal Revenue Service (IRS).
The IRS has multiple locations, and the address to which you should send your return differs depending on where you live. The postal address for this year’s filing instructions can be found on the final page of the instructions.
You can receive more assistance with your past taxes by calling the Internal Revenue Service’s toll-free hotline, 800-TAX-FORM – though you may have difficulty reaching a live person for tax assistance.
According to the IRS, even if you are owed a tax refund for 2018, that does not necessarily imply that you will receive a large cheque in the mail.
According to the IRS, if you owe money for previous years, your refund may be applied to any outstanding tax payments. Additionally,
the return might be applied to the past-due federal debt, like student loans, or it could be used to cover outstanding child support payments.
The IRS may find out in the course of your investigation that you owe money from 2018, in which case you can anticipate to pay interest and penalties on top of the amount that is past due.