If you earned income in 2007 but didn’t file a tax return, you may be surprised to learn the IRS could owe you some money. According to a new announcement from the IRS, people who didn’t file in that tax year but earned income only have a few weeks to see if they’re due the $1.1 billion that’s owed.
1.1 Million People Due Tax Refunds
The IRS says that 1.1 million people may be able to get their cut of the money that’s owed to taxpayers from 2007. The reason some people may not have received their funds is because they didn’t file that year–likely because they earned very little income. However, they could still have overpaid in income taxes and are now due a refund.
For instance, a person may have had their taxes withheld from their wages and overpaid for the year. Without filing, they wouldn’t have known that they were due a refund.
The same could occur for a person who is self-employed and made quarterly payments. If their payments were based on a 2006 income and they didn’t earn nearly as much in 2007, they may have decided not to file, not realizing that they overpaid in 2007.
2007 Returns Must Be Filed by April 18
To make sure taxpayers are refunded the amount they’re due, the IRS is encouraging those who didn’t file in 2007 to get their returns in soon. Returns that were not filed in their tax year are given a three-year window to claim their refunds before the money becomes the property of the U.S. Treasury.
In this case, the window will close on Monday, April 18.
The IRS estimates that half of the potential 2007 refunds will add up to $640 or more per individual filer. Keep in mind that even if you are due money from that tax year, the IRS will hold checks if taxpayers did not file returns for 2008 and 2009. Also, if money like unpaid child support or federal debts like student loans are owed, the refund will be used to offset what’s owed.