The IRS is currently holding over a BILLION dollars worth of tax refunds for over a million taxpayers who simply don’t file annually.
Why does that matter to us? It is up to the taxpayer to file a return in order to claim a refund. It also must be completed within three years of the return’s due date or it is surrendered to the treasury. The IRS also doesn’t penalize those who are owed a refund and file late!
In a lot of instances, people don’t file because they think they didn’t make enough for a refund. However, some people forget that they may qualify for tax credits.
Who should always file?
For 2018, single filers under 65 are required to file if their gross income was at least $12,000. For married couples under 65, the threshold is $24,000.
65 and older?
You need to file if your gross income is at least $13,600. If one spouse is over 65, that number goes up to $25,300 and $26,600 if both are at least that age.
Dependents also have to file based upon income
Single dependents under the age of 65 must file if their unearned income (interest, dividends, and capital gains) exceeds $1,050.
They also must file if their earned income exceeds $12,000.
Don’t make enough, but think you may qualify for the earned income tax credit? The earned income tax credit is designed for those with families. However, single filers get a maximum credit of $519 for 2018. Three or more kids and the break maxes out at $6,432.
Are you one of the million taxpayers who forgot to file? Do you think you need to file and claim tax refunds? Contact us for an in-depth review.