You work hard for your money and every pay check you watch as the government funnels away some of it. Every year, the IRS announces that it is holding unclaimed tax refunds. Taxpayers have a limited time to claim the $2 billion dollars the IRS is currently holding. Approximately 1.7 million people are due refunds out of the $2 billion dollars currently held by the IRS.
One group of taxpayers that almost always has a large percentage of non-filers is military personnel. Obviously, it is a bit hard to file from Afghanistan. Members of the military that failed to file are owed an average of $749 per taxpayer.
Given the amount of the tax refund pool, one might wonder how so many people could have failed to claim their refunds. The answer can be found in a couple of areas.
- People who failed to file returns because they didn’t earn a lot.
- People who switched jobs and didn’t calculate the taxes paid by both employers.
- People who moved and didn’t tell the IRS. Tax refunds are not forwarded in the mail.
- People who can claim the earned income tax credit.
- Self-employed people who overpaid certain quarterly taxes.