According to Internal Revenue Service (IRS) estimates (opens in new tab), the midpoint for the outstanding refunds is $865 — that means half of the refunds are for more than $865 and half are for less. If those that are owed fail to file a prior tax return (opens in new tab) for 2017, that money will become the property of the U.S. Treasury. The return must be properly addressed, mailed and postmarked by May 17 to qualify. “The IRS wants to help taxpayers who are due refunds but haven’t filed their 2017 tax returns yet,” said IRS Commissioner Chuck Rettig. “Time is quickly running out for these taxpayers. There’s only a three-year window to claim these refunds, and the window closes on May 17. We want to help people get these refunds, but they will need to quickly file a 2017 tax return.”
The US states owed the biggest 2017 tax refunds
The agency also reveals that taxpayers in some states are owed far more in tax refunds than in others, providing an even bigger incentive for residents to acquaint themselves with the best tax software (opens in new tab).
How else could taxpayers miss out
The IRS also warns that by not filing a tax return (opens in new tab), low- and moderate-income workers could miss out on Earned Income Tax Credit (EITC), which for 2017 was worth up to $6,318. The relevant EITC thresholds for 2017 were:
$48,340 ($53,930 married joint filers) for those with three or more qualifying children;$45,007 ($50,597 married joint filers) for people with two qualifying children;$39,617 ($45,207 married joint filers) for those with one qualifying child, and;$15,010 ($20,600 married joint filers) for people without qualifying children.
Anyone about to file for the first time and Americans who are eligible for the COVID-related relief provided by stimulus checks (opens in new tab) but wouldn’t normally file are also reminded of the need to file a 2020 tax return to claim the Recovery Rebate Credit (opens in new tab), which will make good on money they may have missed out on under the first and second stimulus payments.
