IRS: Millions in potential refunds for Ind. taxpayers

WASHINGTON (WANE) – The IRS said millions of dollars remain unclaimed in potential refunds for Hoosier taxpayers for the 2010 filing year.

The agency said Indiana has approximately $15.4 million in potential refunds for an estimated 19,600 individuals. The median potential refund is $570.

The deadline to claim money from 2010 is Apr. 15. The law allows taxpayers a three-year window of opportunity to claim a refund.

There is no penalty for filing a tax return that qualifies for a refund.

The IRS said taxpayers who were students or worked part-time should check their tax records. It’s likely most of the outstanding refunds are from individuals who made too little money that required a tax filing, but still had money withheld from a paycheck – or even made quarterly estimated payments.

“The window is quickly closing for people who are owed refunds from 2010 who haven’t filed a tax return,” said IRS Commissioner John Koskinen. “We encourage students, part-time workers and others who haven’t filed for 2010 to look into this before time runs out on April 15.”

If individuals have not filed tax returns for 2011 or 2012 and owe the IRS money, the amount of the 2010 refund could be used to satisfy that outstanding amount. The potential 2010 refund can also be used to satisfy unpaid child support or pas due federal debts (i.e. student loans).

It’s possible low-income individuals might also be losing out on claiming the Earned Income Tax Credit.

The IRS provided the following thresholds for 2010:

  • $43,352 ($48,362 if married filing jointly) for those with three or more qualifying children,
  • $40,363 ($45,373 if married filing jointly) for people with two qualifying children,
  • $35,535 ($40,545 if married filing jointly) for those with one qualifying child, and
  • $13,460 ($18,470 if married filing jointly) for people without qualifying children.

Nationally, the IRS estimated $759 million remained outstanding in potential refunds for the 2010 tax year. An estimated 918,000 people have not filed tax returns for that year.

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