taxes

IRS has $1 billion in unclaimed refunds

Taxes » Tax Refund » IRS Has $1 Billion In Unclaimed Refunds

Stacks of $100 bills

The IRS has $1 billion in unclaimed refunds it wants to give to the rightful owners.

The cash is waiting for taxpayers who didn't file a 2011 tax return.

If you're one of the approximately 1 million folks who didn't send in a Form 1040 back then, all you have to do is file that old tax paperwork by this year's April 15 deadline.

But don't miss this last-chance deadline for a tax refund. If you do, then the U.S. Treasury gets to keep your money. Forever.

Median refund of $698

The IRS estimates that the median unclaimed refund check from 2011 is $698. That means half of the checks are less than that, but half are more.

Taxpayers eligible for the unpaid refunds live in every state and the District of Columbia.

The state with the most unclaimed refunds is California. The 103,700 Golden State residents who didn't file in 2011 are due a total of $92.2 million.

The 5 states with the most unclaimed refund money

StateUnclaimed refundsMedian refund amount
California103,700$627
Texas101,800$743
Florida67,500$720
New York63,400$765
Illinois44,000$763
Pennsylvania44,000$770

Vermont taxpayers, on the other hand, appear to be quite tax-conscious. Only 2,100 residents in that New England state didn't file in 2011.

And Wyoming's 2,800 nonfilers have the chance to hit the biggest individual 2011 tax-refund jackpot. The median check in that western state is $835.

An annual problem

Tax law says a taxpayer has three years to file a return and get the associated refund. Since the 2011 tax year returns were due by the April 2012 deadline, that three-year window allows these forms to be filed by the April 2015 filing due date.

The time-shift tax filing is not unusual. Unclaimed tax refund money piles up every year.

Some people may not have made enough money in 2011 to require them to file a tax return. Others simply didn't get around to filing and because there's no penalty for not sending in a return when no tax is owed, they didn't get notices from the IRS.

Whatever the reason, individuals who don't file risk losing tax money that is theirs and possibly even more.

And remember that if you didn't make much money in 2011, you might be eligible to claim the earned income tax credit, or EITC, for that tax year when you finally send in the return.

The EITC is available to individuals and families whose incomes are below certain thresholds. The 2011 tax year thresholds were:

  • $13,660 ($18,740 if married filing jointly) for those with no qualifying children.
  • $36,052 ($41,132 if married filing jointly) for people with one qualifying child.
  • $40,964 ($46,044 if married filing jointly) for those with two qualifying children.
  • $43,998 ($49,078 if married filing jointly) for those with three or more qualifying children.

Don't forget 2012, 2013

But just getting up to date with your 2011 return might not be enough.

The IRS says 2011 refund checks might be held if the taxpayers who finally file that year's return also failed to file tax returns for 2012 and 2013.

Check your records. If you missed those subsequent years, too, get those forms to the IRS as soon as possible.

The IRS forms and publications section has a link to prior year tax returns. You can download the 2010, 2011 and 2012 filing materials there.

 

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