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IRS Has Refunds Totaling $950 Million for People Who Have Not Filed a 2012 Federal Income Tax Return

By failing to file a tax return, people stand to lose more than just their refund of taxes withheld or paid during 2012.

RefundWASHINGTON — The Internal Revenue Service announced that Federal income tax refunds totaling $950 million may be waiting for an estimated one million taxpayers who did not file a federal income tax return for 2012. To collect the money, taxpayers must file a 2012 tax return with the IRS no later than this year’s April tax deadline.

“A surprising number of people across the country overlook claiming tax refunds each year. But the clock is ticking for taxpayers who didn’t file a 2012 federal income tax return, leaving nearly $1 billion in refunds unclaimed,” said IRS Commissioner John Koskinen. “We especially encourage students and others who didn’t earn much money to look into this situation because they may still be entitled to a refund.”

The IRS estimates the midpoint for potential refunds for 2012 to be $718, with half being worth more than $718 and half being worth less.

The IRS reminds taxpayers seeking a 2012 refund that their checks may be held if they have not filed tax returns for 2013 and 2014. In addition, the refund will be applied to any amounts still owed to the IRS, or their state tax agency, and may be used to offset unpaid child support or past due federal debts, such as student loans.

Many low-and-moderate income workers may not have claimed the Earned Income Tax Credit (EITC). For 2012, the credit is worth as much as $5,891.   The EITC helps individuals and families whose incomes are below certain thresholds. The thresholds for 2012 were:

  • $45,060 ($50,270 if married filing jointly) for those with three or more qualifying children,
  • $41,952 ($47,162 if married filing jointly) for people with two qualifying children,
  • $36,920 ($42,130 if married filing jointly) for those with one qualifying child, and
  • $13,980 ($19,190 if married filing jointly) for people without qualifying children.

Current and prior year tax forms and instructions are available on the IRS.gov Forms and Publications page, or by calling toll-free: 800-TAX-FORM (800-829-3676). Taxpayers who are missing Forms W-2, 1098, 1099 or 5498 for the years 2012, 2013 or 2014 should request copies from their employer, bank or other payer.

Taxpayers who are unable to get missing forms from their employer or other payer should go to IRS.gov and use the  “Get a Transcript by Mail” button to order a paper copy of their transcript and have it sent to their address of record. Taxpayers can also file Form 4506-T to request a transcript of their tax return. Taxpayers can use the information on the transcript to file their return.

Individuals who did not file a 2012 return with a potential refund:

State or District Estimated

Number of

Individuals

Median

Potential

Refund

Total

Potential

Refunds*

Alabama 18,700 $713 $16,684,000
Alaska 4,700 $834 $5,019,000
Arizona 26,000 $631 $22,078,000
Arkansas 10,100 $692 $8,987,000
California 94,900 $656 $82,782,000
Colorado 19,300 $667 $16,961,000
Connecticut 11,800 $803 $11,511,000
Delaware 4,200 $771 $4,012,000
District of Columbia 3,600 $741 $3,343,000
Florida 64,700 $721 $58,598,000
Georgia 34,300 $642 $29,395,000
Hawaii 6,500 $740 $6,091,000
Idaho 4,400 $607 $3,652,000
Illinois 40,300 $782 $38,893,000
Indiana 22,000 $751 $20,448,000
Iowa 10,800 $764 $9,917,000
Kansas 11,000 $699 $9,811,000
Kentucky 13,500 $746 $12,122,000
Louisiana 20,600 $726 $19,767,000
Maine 4,100 $651 $3,432,000
Maryland 22,600 $722 $21,108,000
Massachusetts 20,600 $767 $19,714,000
Michigan 34,600 $733 $32,118,000
Minnesota 15,200 $657 $12,981,000
Mississippi 10,800 $646 $9,325,000
Missouri 22,800 $675 $19,886,000
Montana 3,500 $669 $3,083,000
Nebraska 5,400 $695 $4,720,000
Nevada 12,500 $704 $11,280,000
New Hampshire 4,400 $804 $4,284,000
New Jersey 30,600 $803 $30,016,000
New Mexico 7,700 $715 $7,181,000
New York 57,600 $796 $56,310,000
North Carolina 29,700 $619 $24,469,000
North Dakota 2,600 $831 $2,682,000
Ohio 37,300 $717 $33,321,000
Oklahoma 18,500 $744 $17,411,000
Oregon 15,700 $620 $12,820,000
Pennsylvania 40,200 $796 $38,243,000
Rhode Island 3,200 $777 $3,014,000
South Carolina 12,500 $633 $10,648,000
South Dakota 2,800 $785 $2,707,000
Tennessee 19,700 $702 $17,318,000
Texas 96,400 $771 $93,998,000
Utah 7,400 $640 $6,316,000
Vermont 2,000 $698 $1,689,000
Virginia 29,000 $698 $26,297,000
Washington 26,100 $764 $25,292,000
West Virginia 5,100 $800 $4,870,000
Wisconsin 12,900 $647 $10,837,000
Wyoming 2,700 $851 $2,908,000
Totals 1,037,600 $718 $950,349,000

* Excluding the Earned Income Tax Credit and other credits.

 

 

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By C Fitts Tax Solutions, LLC Posted in Tax Talk