Billions of dollars are lost by taxpayers annually as they fail to claim their refunds, which are in government accounts. The unclaimed funds are mostly because the taxpayer missed deductions, credits, or errors in tax filing. Nevertheless, the process of claiming a tax refund can be quite easy if you know the right steps. In this comprehensive guide, we’ll discuss eight ways in which you can get back your unclaimed tax refunds, and you will know how to work with them.
First, you’ll need to know exactly what unclaimed taxes mean. So, let’s dive in!
What are Unclaimed Taxes?
Unclaimed tax is the amount of a tax refund or tax credit that was meant for eligible taxpayers but hasn’t been “claimed” . These unclaimed funds are a consequence of different reasons, which contain some things, and sometimes due to the lack of knowledge of the taxpayer.
An individual who overpays taxes or is entitled to receive tax benefits, including some refundable tax credits, can get a refund from the government, or the latter can issue a credit.
Nevertheless, if they do not fulfill their obligations to claim within the specified deadlines, these refunds or credits remain unclaimed.
Tax-unidentified and untraceable money can be federal income tax refunds, state tax refunds, earned income tax credits, and other tax benefits.
Taxpayers have to stay active in ensuring they get any of the tax refunds and credits they are entitled to by carefully reviewing the tax returns and making use of any available resources to file any claims for the unclaimed funds.
Unclaimed Tax Refunds: How to Claim Them
- Check Your Eligibility Status
- Check Prior Tax Returns
- File An Amended Tax Return
- Use Utilize the IRS “Where’s My Refund?” Tool
- Contact the IRS
- Check State Tax Agencies
- Review Unclaimed Property Databases
- Seek Professional Assistance
1. Check Your Eligibility Status
You must find out if you are eligible for any refunds before starting this process. The easiest way to confirm if you qualify is to closely examine your old tax returns.
Check for scenarios such as overpaid taxes, unclaimed deductions, and missed credits. Upon a deeper inspection, you can spot the unused refund opportunities that you might have passed up in the process.
After you have discovered the refund opportunities you can claim, it’s time to get those supporting documents together and file for the claim. This could entail revising returns or filling out additional forms, which will depend upon the circumstances.
2. Check Prior Tax Returns
Tax refunds include checking your previous tax returns, which is an important factor in claiming unclaimed tax refunds. Reviewing your last tax returns for any wrongful statements and inaccuracies is one of the first steps to take at the beginning.
This also involves verifying if the relevant deductions, allowances, and credits were correctly applied or if there was any mistake in reporting income.
Use tax preparation software or consult professionals. Check if there are mistakes or errors in your previous year’s tax returns. This might be excluded in the simplified process since you cannot claim any expenses such as education, medical bills, or charitable contributions.
Reviewing those old tax returns may reveal the possibility of unclaimed credits that can be decided upon.
3. File An Amended Tax Return
If you discover that your previous tax returns contained errors or omissions that resulted in your being deprived of the refund you qualified for, it is important to rectify the situation immediately.
The Internal Revenue Service (IRS) allows taxpayers to correct their mistakes within a specific period, which is usually not longer than three (3) years from the original filing date.
To file an amended tax return, you will need to complete IRS Form 1040, which includes the corrected information and other details about the refund that was never claimed in the first place.
Attach with the amendments any invoice, receipt, and other documents to support your proposals. That is the purpose of automation: to make sure that the processing of your claims is flawless and timely.
In addition, correct and complete information must be provided when one is filling out Form 1040X with the corrections.
This involves mentioning the alteration made to the original reimbursement request and including the necessary supporting documentation where needed.
Additional supporting forms, appointment letter, or financial statements may be needed in the documentation, thus displaying the basis for the adjustments being made.
4. Use Utilize the IRS “Where’s My Refund?” Tool
The Internal Revenue Service (IRS) has an online tool known as “Where’s My Refund?” that lets taxpayers track the status of their refunds. This tool provides you with up-to-date information on the state of your refund.
Just by entering your Social Security number and filing status, you can instantly check if there are any old claims of refunds for the previous years.
If you left a tax refund filing unfinished or did not receive it, the “Where’s My Refund?” tool might be the right tool for you to locate any unclaimed money that rightfully belongs to you.
It’s among the convenient methods that help you stay up-to-date with your tax and also avoid a missed chance of a refund.
5. Contact the IRS
Are you supposed to get a tax refund for a certain fiscal year but it has not arrived? One of the ways is to contact the IRS right away. Through avenues such as calling the IRS and giving them all the information related to your tax return, you can claim your funds back.
Please be mindful that you must have all the information related to the specific tax year for which you need help, your filing status, and any vital documents with you while contacting the IRS.
When you reach IRS agents, they will expedite your service. They can assist you in determining the status of your refund as well as the expected steps to take to access it.
6. Check State Tax Agencies
Moreover, the IRS, a federal agency, should be contacted, as sometimes there are unclaimed state tax refunds as well. Each state has its processes for dealing with unclaimed tax refunds, and they often differ from what is allowed by the federal government.
You need to go to your state’s tax site or contact them and ask about the refunds you might have missed.
7. Review Unclaimed Property Databases
The tax revenue left untouched can often become unclaimed property held by state governments. The state government must maintain these databases to reunite people with their unclaimed funds, which include state-backed refunds that have not been claimed.
One of the key advantages of this approach is that there is no hassle in accessing information on missing property. Just by searching the appropriate state’s unclaimed property site or national directories like MissingMoney.com, you will find out in a jiffy if you are owed any unclaimed funds.
This ensures that the claim process is always simple and easily navigable; hence, there are adequate instructions on what steps to follow.
By following the above-stated instructions, you will start the process of reclaiming your unfiled tax refunds and, also, get these refunds back.
Overall, checking the unclaimed property databases may allow you to get refunds that you don’t even know about, considering you are missing out on unclaimed refunds.
Set aside time to check for unclaimed funds in your name and follow the right procedures to claim what is truly yours!
8. Seek Professional Assistance
Claiming unclaimed tax refunds might appear too complicated, and you may also encounter complexities in the process of doing it. In such cases, seeking professional assistance can be a feasible option for you.
Certified public accountants (CPAs) and tax practitioners (enrolled agents) have the skills and experience necessary to help you with your tax matters successfully.
These experts would look into your tax history, identify any missed refunds, and provide the needed assistance to support you when you file for the refund.
Read also:Â How To Make A Personal Budget In 5 Steps
Conclusion
Getting your unclaimed tax refund is a key measure for you to get all your refunds that you paid as tax.
Whether it is a previous tax return verification, amended returns filing, IRS tool usage, or the employment of professional help, Using these eight methods provided in this guide, you will be able to recover the forgotten refunds.
