Filing for an unclaimed tax refund can seem like an uphill task, but with the right steps, you can do it successfully. Here are six steps on how to file for unclaimed tax refunds.
Claims on unutilized tax refunds may be filed with the respective tax office, where a refund request should be placed to reclaim the overpaid or wrongly paid taxes on the previous tax years.
This usually involves you filing an amended tax return, using, for example, the IRS Form 1040X in the US, where you correct or change information on the original tax return, which you receive a refund that belongs to you.
When people realize that they are eligible to obtain unclaimed tax refunds because they have missed the deductions, credits, and exemptions, they should file the necessary papers with the tax authority to claim the refunds.
After the tax authority examines and authenticates the return that has been revised, they will then process the refund and send it out to the taxpayer through the issuance of a check, or they can deposit it directly in their bank account.
How To File For Unclaimed Tax Refunds
- Collect your tax documents
- Check your eligibility
- Complete the refund application
- Attach supporting documents
- Submit all applications
- Wait for the review
1. Collect your tax documents
The process of filing unclaimed tax refunds starts by the person gathering all the tax documents. Make sure this collection contains the necessary documents, such as W-2s, which give you an overview of income from employment, and 1099 forms that provide additional information about income from places such as interest on savings or freelance gigs.
If you have any additional tax-related papers, such as credit for payments made or receipts, provide them as they may prove useful.
Moreover, choose the e-filing option and also select Direct Deposit as the preferred method for receiving tax refunds.
Returns that are electronically filed offer quicker processing; in most cases, the respondents receive their money fast, and straight into the bank account.
The paper return process takes longer, and the respondents have to wait for several weeks before the process of their returns is done.
2. Check your eligibility
Knowing your eligibility is one of the major aspects on how to file for unclaimed tax refunds. Before requesting a refund, you need to check your previous tax returns to be sure everything was filed correctly.
Peer into each return carefully for signs of the above-the-line deductions or credits that you might otherwise be entitled to.
This means consider all incomes, deductions, and credits claimed earlier to check whether they are correct and complete. As a supplement, ensure that you are adequately informed of changes in tax laws or regulations that may affect your refund eligibility.
Tax laws are always subject to revisions, and your eligibility status may vary as things change in your financial situation or there are adjustments to the legislation.
3. Complete the refund application
Now that you have already confirmed the unclaimed tax refunds apply to you, the next step is to complete the necessary form for the refund. The federal income tax refunds for the year are generally filed on IRS Form 1040X, a return used to amend a previous return in the United States.
This form allows you to correct errors or claim overlooked deductions or credits from past returns. Make sure you indicate correct information on Form 1040X, including detailed changes and the tax year amended.
For state tax refunds, the process may differ depending on the state in which you live. Each state has a set of laws and procedures for how unclaimed money will be recovered.
As every state’s tax office provides its own set of guidelines, you should check their website or contact them for further instructions.
Support your claim for a refund by including any supporting document stated in the tax authority’s requirements to justify the refund.
Submit copies of your original tax forms (such as your tax return) together with other documents that supports the claim for the refund. This may include:
- Receipts and invoices
- Bank statements
- 1099 forms
- Correspondence with the IRS
Irrespective of whether you apply for federal or state tax refunds, make sure that you fill out the application form accurately. Recheck the given data to avoid any mistakes as well as to ensure that there are no incorrect or incomplete information that would stop your application or lead to rejection.
5. Submit all applications
The next major milestone is to submit them to the right tax authority. This is the rule for federal tax refunds in the United States if you are mailing. You will mail your amended return to the address that is subject to Form 1040X, the official form for amending previous tax returns.
While sending by mail your amended return to the IRS, make sure that you use the appropriate address and that it is postmarked before the date of application. This might result in your claim being rejected or even delayed if you fail to act on it.
In addition, ensure that your amended return have any relevant tax payments and documents required. The submission process may differ in each state, however, some states, along with an amended return, might also need you to mail it, whereas others may allow you to file it electronically.
Ensure you check your state’s tax authority website, as there might be specific directives on how to fill out the forms, deadlines for the applications, and documents requested.
Be it the federal or state tax refund, accuracy, and precision are of utmost importance. Check your application and all other backup documents once more to confirm that there are no errors and everything is complete, and then submit them.
Through proper completion of submission procedures and observing the deadlines, your refund request may get better chances, and the process of receiving your money can also get faster.
6. Wait for review
After submitting your application for an unclaimed tax refund, the waiting period is important because you must wait for the tax authority to go through your application and arrive at a decision.
The IRS usually refunds electronically filed tax returns in no more than 3 weeks (21 days), while paper returns take longer. Although some factors could lead to a refund being delayed or an error being made.
Some of the main reasons for the late refunds are the inaccuracies of tax filing, discrepancies in the information submitted or the identities of the taxpayers.
It is not advisable to contact the tax department overly often, especially when the assessing period is ongoing, because constant calls might hinder the process if crucial details are missed.
In such situations, be patient and check the status of your refund online by going on relevant sites provided by the Internal Revenue Service, such as “Where’s my refund?”
This online tool offers you the opportunity to verify your refund status since it keeps you posted the processing stage, the estimated delivery date, and the issues it encountered in the specific time points.
To check the status of your refund, enter the user ID and password. To the e-File tab – Income Tax Returns – View Filed Returns.
Read also: Unclaimed Tax Refunds: How To Claim Them
Conclusion
Making a claim on unclaimed tax refunds is definitely something that individuals who have failed to account for or keep note of previous tax returns should consider.
Taxpayers may benefit from a significant financial boost if they follow the required steps and provide the necessary documents.
It is pivotal for a taxpayer to stay updated on the deadlines and requirements from the revenue authorities in order to ensure a seamless and successful tax refund process.
