In the US, taxes work on a pay-as-you-go basis, and it’s not a perfect system. If you are a salaried worker, you claim allowances on your W-4 withholding form each year, and based on that information, your employer withholds a certain portion of your income for tax purposes that is paid to the IRS.
However, most taxpayers don’t just hit the balance at the end of the year. Most people who file a tax return are owed an IRS amount, while others end up owing the IRS money. Things rarely work perfectly, and it’s because there are factors outside of your salary that dictate what your tax burden looks like (for example, what your external income and deductible expenses involve).
Of course, the IRS is not in the business of simply giving money back. Rather, you must apply, and you do so by filing a tax return each year. And if you do not do it Filing a tax return for a year that is owed you money, you risk losing your refund.
That is precisely the risk that a large number of Americans may be taking now. The reason? The IRS withholds more than $ 1.5 billion in tax refunds from fiscal year 2016 because approximately 1.4 million people never filed a return at that time. And with this year’s tax deadline fast approaching, those who owe some of that money only have a few more days to claim it.
Don’t give up the cash that is yours
Typically, you only have three years to file a tax return prior to your initial due date and collect any applicable refund. But this year, he’s got a little extra time, because the April 15 tax filing deadline was pushed back to July 15 to give Americans more time to deal with their taxes in light of the COVID outbreak. 19. As such, if you’re still sitting on your 2016 tax return, you have another week and changes to make it, or you risk losing money. And given the number of people struggling financially due to the ongoing recession, giving up money is a reckless thing for now.
The IRS estimates that the midpoint for potential 2016 rebates is $ 861, meaning half of the rebates will be less than that amount, but half will also be more. It is not a small sum to give up, so if you never filed a tax return in 2016, start moving out as soon as possible. The good news is that if your income is less than $ 69,000, you are eligible to file your taxes for free. And either way, it’s worth doing electronically, as that will speed up the processing of your return and any refunds owed to you in light of it.
Keep in mind that if you are owed money from the IRS for 2016, you will have no problem filing your return late. Not surprisingly, the agency doesn’t mind holding onto its money any longer; it only matters when you Don’t pay on time.