Sounds like you’re one of the lucky ones – more than 1 million people are owed more than $1.1 billion in tax refunds from 2007. The IRS estimates more than half of the refunds are for at least $640. In California alone, 124,000 people are owed refunds. But the clock is ticking, so you’d better act fast if you want your share of the cash. You need to file a return for 2007 no later than April 18, or your luck will run out.
Where did all this money come from?
In some cases, people earned too little income so they didn’t need to file a tax return, even though they had taxes withheld from their wages, or they made quarterly estimated tax payments.
In other cases, people with low or moderate incomes might not have claimed the Earned Income Tax Credit (EITC). You might have been eligible for the EITC in 2007 if you had two or more children and earned less than $39,783. The income limit was $35,241 for those with one child, and $14,590 for those who were childless.
Do I simply need to file a 2007 tax return to get the money owed to me?
While you just need to submit your return to claim a refund, the money won’t be sent to you unless your financial house is in order. You must have filed your tax returns for 2008 and 2009. And if you owe money to the IRS, your refund will be applied to that balance. It also might be used to offset unpaid child support or federal debts, like student loans.
Will I get in trouble for being delinquent with my 2007 tax return?
The IRS doesn’t levy penalties for filing a late tax return IF you’re owed a refund. If you don’t file by April 18, you’ll lose out and the money will go to the U.S. Treasury.
About the Writer
Susan Ladika has been a writer and editor for 25 years. Her freelance work has covered everything from business to travel to science to international issues, and have appeared in such publications as Science, Town & Country, HR Magazine, Developer, The Wall Street Journal-Europe, The San Francisco Chronicle, and many others. She has also done extensive editing as a newspaper and wire service editor holding positions such as the Tampa Tribune Bureau Chief.
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