Tuesday, March 3, 2009 | 10:44 a.m.
It pays to file income tax returns, the IRS says.
Tax officials announced today that 18,300 Nevadans left $17.6 million on the table in unclaimed refunds from federal income tax returns not filed in 2005.
The deadline for claiming the money is a familiar one: April 15, the same as the deadline to file this year’s tax returns.
The IRS estimates that half of those who could claim refunds for 2005 would get more than $551 apiece. Some may not have filed because they had too little income to require filing, but taxes were still withheld from their wages.
The law provides most taxpayers with a three-year window for claiming a refund. There is no penalty for filing a late return that results in a refund.
If no return is filed in three years, the money becomes property of the U.S. Treasury.
There are a couple of catches: Refund checks for 2005 will be held if taxpayers have not filed tax returns for 2006 or 2007. In addition, the refund will be applied to any amounts still owed to the IRS or may be used to satisfy unpaid child support or past due federal debts such as student loans.
On the other hand, many low-income workers who did not file may qualify for the Earned Income Tax Credit, which in 2005 was worth $4,400 and can end up putting cash in filers’ pockets.
Unmarried individuals qualified for at least some of the credit if they earned less than $35,263 and had more than one qualifying child living with them, earned less than $31,030 with one qualifying child, or earned less than $11,750 and had no qualifying child. Limits were slightly higher for married individuals filing jointly.
Tax forms and instructions are available on the forms and publications Web page of IRS.gov or by calling 1-800-TAX-FORM (1-800-829-1040).
Jean Reid Norman can be reached at 990-2658 or [email protected].
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