Californians have a significant opportunity ahead of them as the deadline to file 2021 tax returns approaches. The Internal Revenue Service (IRS) has announced that approximately 116,300 taxpayers in the state are eligible for a share of nearly $92.3 million in unclaimed refunds. However, these refunds will only be available if individuals file their tax returns by April 15.
The IRS revealed that the estimated median refund for those who have not yet filed is around $600. This is a crucial reminder for those who may have forgotten or delayed their tax filings, as failing to submit by the deadline could mean losing out on this money, which would then revert to the U.S. Treasury.
Taxpayers can check their eligibility and refund status using the IRS2Go mobile app, which also provides information on free tax services. Low- to moderate-income workers may qualify for additional benefits, such as the Earned Income Tax Credit, which can significantly increase their tax refund. For instance, in 2021, eligible taxpayers with children could receive up to $6,728 from this credit.
If you’re unsure about your eligibility for the Earned Income Tax Credit, the IRS offers an EITC Assistant tool online. This tool guides users through a series of questions to determine if they qualify, without requiring sensitive personal information.
It’s important for taxpayers to gather necessary documents well ahead of the filing deadline. The IRS advises that some documents may take time to obtain, so getting started early is key. Taxpayers should prepare to provide a government-issued ID, Social Security card, income forms like W-2s or 1099s, and bank details for direct deposit refunds.
For those needing assistance, free tax preparation services are available throughout Los Angeles County for individuals earning less than $67,000 annually. Various organizations, including the Volunteer Income Tax Assistance program, offer help with filing.
In summary, Californians have a chance to claim their unclaimed tax refunds, but they must act quickly. With the deadline approaching, it’s essential to gather documents, check eligibility for credits, and file tax returns to secure those funds.