A lot of people don’t realize this, but the IRS has continually reminded taxpayers that they may have some money waiting on them that could go as far back as 2014! The IRS estimates that about 1 million people who didn’t file a tax return in 2014 have accrued a total of $1.1 billion in unclaimed tax refunds!
There are quite a few things you should know if you are interested in finding out if you have any unclaimed 2014 tax refunds, and it’s crucial to know that the deadline for 2014 tax refunds is Tuesday, April 17, so it’s coming up! In order to get a refund in these situations you must properly address and mail your 2014 tax return to the IRS by the April 17th deadline.
Even if you didn’t file a tax return in 2014 you still can, and this would be an imperative to do so if you want the refund. It’s also important to know that getting your 2014 tax refund will take a little bit longer than usual because it’s a prior year’s return.
Please note that if you do not file a return in any given year—including 2014—the law states you generally have three years from the initial due date of the return to submit a return and claim a refund. This also takes extensions into account, so if you filed for an extension on your return for 2014, the statute to claim your refund expires three years from the date you filed your return, generally speaking with some additional details.
Sometimes, this unclaimed refund will end up being applied to any amounts an individual owes the IRS or another tax agency, or it can help offset student loans and other federal debts. It’s also important to understand that if you didn’t file a tax return in 2015 and 2016 then the IRS may potentially hold your 2014 refunds.
If you didn’t file a tax return in 2014, you also potentially missed out on earned income tax credit, which in 2014 could have been up to $6,143!
It’s understandable if you don’t really know where to begin in terms of trying to get a 2014 tax refund, but your tax forms from this year and prior years are in the IRS site, and they include a whole assortment of different forms for 2014. In the event that you need a W-2, 1099 or some of the other popular forms, you should contact your employer from 2014 or you bank. If you can’t access these forms through your employer for whatever reason, you can also order a free wage and income transcript from the IRS using this tool.
There are two types of penalties when it comes to filing a late tax return with the IRS, including failure-to-pay and failure-to-file penalties. The failure-to-pay penalty is one that accrues 0.5% per month after the deadline, but does not exceed 25% of the unpaid tax liability that’s due. The failure-to-file penalty is 5% of the unpaid taxes each month after the past deadline—also not exceeding 25% of the unpaid tax liability due—so not filing your taxes is a huge mistake because it ends up costing you much more in the long run.
No matter what, you should always file your tax return, even if it’s late, and it shouldn’t matter if you will get a refund or not. There are so many aspects of life that taxes can help you out with, including your credit, loan qualifications and rental agreements.
If you are interested in seeing if there’s a 2014 refund for you, a friend or loved one then don’t hesitate at all because April 17th is right around the corner!