Staying Fit
If you didn't file a federal return for 2016 but think you may be owed a refund for that tax year, you have until July 15 to claim your money.
The typical unpaid tax refund for 2016 is $861, the Internal Revenue Service (IRS) estimates. For some people, the refund could be much higher. Because you have three years to file a return and claim a refund, the window closes for the 2016 tax year on July 15. Any unclaimed refunds will go to the U.S. Treasury.
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About 73 percent of tax returns result in refunds, says Megan Gorman, tax attorney and managing partner at Chequers Financial Management in San Francisco. “To not file a 2016 return could be a mistake — you'd be leaving money on the table,” she warns. The IRS puts the total for unclaimed refunds at $1.5 billion for that tax year.
Even if you did file, it wouldn't hurt to double-check your 2016 return and make sure there are no errors in your favor. If so, you could file an amended return with Form 1040-X.
If you're worried that the IRS will slap you with late-filing penalties, don't be. There are no penalties for filing a late return if you're owed a refund. (If you owe taxes, however, the agency charges 5 percent a month, up to 25 percent of the amount you owe.)
Added incentive for low-income taxpayers to file
Lower-income filers in particular could get substantially more than $861, thanks to the earned income tax credit (EITC). Deductions reduce your income, which reduces your taxes. Tax credits reduce your taxes dollar for dollar.