Millions of money sit idle, waiting to be claimed, but the owners are ignorant of their true property. This story is true for unclaimed tax returns in California that reach an astounding amount. And what’s the catch? A large number of Californians, especially those with modest incomes, are unaware that they are entitled to a refund. Now let’s take a closer look at this problem and see if you could be losing money unknowingly.
Credits: Fox 59
The Unclaimed Refunds:
Imagine the following: California pays its fair share of the billions of dollars in unclaimed tax refunds that the Internal Revenue Service (IRS) keeps onto each year. An astounding $94.2 million in unclaimed funds was the consequence of an estimated 88,200 Californians failing to complete tax returns in 2020 alone. That’s correct, there are almost $100 million that legitimately belong to diligent people like you and are only waiting to be recovered.
Why Refunds Go Unclaimed:
What is the reason for the unclaimed refunds? The complexities of tax filing obligations hold the key to the solution. Many people do not realize that they are eligible for refunds simply because their income falls below the reporting threshold, especially those with low earnings. They are thus unable to claim the taxes withheld from their pay. It isn’t a case of negligence; rather, it is a case of not knowing their rights.
Deadline and Consequences:
You have to take immediate action if you desire your rightful refund. Internal Revenue Service gladly allows taxpayers to file forms and request unclaimed refunds within a three-year period. May 17, 2024, is quickly approaching for those who did not register for the 2020 tax year. If you miss this deadline, your unclaimed funds will be happily taken by the federal government, leaving you empty-handed and angry over a chance you lost.
Importance of Filing:
The primary matter that requires discussion is the extent of your potential return. Though the average unclaimed return may not seem like much, the hidden jewels are what really need to catch your attention. If you meet the qualifying requirements, you may be eligible for the Earned Income Tax Credit (EITC), a useful supplement that might greatly increase your refund. All money matters and you should never leave any on the table, whether you’re a family with young children or a low-income worker.
Steps to Claim Unclaimed Refunds:
Claiming your unclaimed refund doesn’t have to be a daunting task. Here’s a simple roadmap to guide you along the way:
Check Eligibility: Take a moment to assess whether you’re eligible for a refund based on your income and withholding.
File a Return: If you haven’t already done so, file a tax return for the relevant tax year. Remember, the deadline for 2020 taxes is May 17, 2024 — mark your calendar and take action.
Maximize Refunds: Don’t settle for less than you deserve. Ensure you claim all applicable tax credits and deductions, including the EITC, to maximize your refund potential.
Free Tax Preparation Services: Alright, time to tackle the big issue – submitting your tax return. Thankfully, there are several of free tax preparation services out there to help you along the way:
Direct File: This option is best for people with simple tax situations as it provides step-by-step instructions for completing standard federal forms.
Free File Guided Tax Software: Get in touch with independent online tax preparation providers who provide free filing to qualified candidates.
Free File Fillable Forms: This option lets do-it-yourselfers electronically complete tax forms at their own pace.
Community-Based Organizations and Volunteer Programs: Qualified individuals can receive free tax preparation assistance from organizations like the United Way of California and programs like the AARP Foundation Tax-Aide.
Conclusion:
You must make the most of this as the deadline for submitting claims for unclaimed tax refunds approaches. By filing your tax return, receiving your refund, and making sure your hard-earned money is used wisely, you can ensure that it doesn’t disappear. A little forethought and proactive work can turn an unused return into a huge profit. You can take what is rightfully yours or you can decide to leave money on the table.
