Taxpayers who for various reasons are yet to file their income tax returns for the past few years still are in line to claim refunds that they are owed by the federal government. But they are close to the final deadline this year and the window will close for good this year. Many could forfeit the chance to get a stimulus check from the government.
The Internal Revenue Service said that Americans have failed to claim close to $1.5 billion in refunds on the table for the income tax year 2019. The median refund, or the reimbursement made to a taxpayer for any excess amount paid in taxes or other claims, to the federal or state government has been pegged at around $890.
The IRS issued a reminder through a bulletin that anyone who has failed to file their 2019 should do so maximum by July 17 this year and claim their refund stimulus check.
Danny Werfel, the IRS commissioner said that as the income tax returns for 2019 was smack in the middle of the pandemic, many people forgot to file and claim the refunds or overlooked it. He advised taxpayers to begin soon and to make sure that they remain aware of the deadline and do not miss out on the stimulus check.
The agency noted that though people might have made lesser money that year and did not withhold any money from their payments, they still could be owed a refund. This included their share of the EITC stimulus check. The Earned Income Tax Credit for 2019 went out to people with an Adjusted Gross Income of $50,160 for that year. The credit stimulus check is linked to the number of children and other dependents in the family.
The Commissioner said that frequently part-time or irregular workers, students, and other in the low and moderate-income category often neglect to file their income tax returns. They never realize that they could be missing out on an stimulus check from the federal administration.
A Wider Window To Claim Your Federal Stimulus Check
For taxpayers it is usually a 3-year window from the time a tax gets due before they can claim any refund stimulus check for that financial year. Late filing does not attract any penalization for a refund. It is a different rule when someone owes taxes. A delay, in that case, will definitely attract a penalty.
As the deadline for filing the income tax returns for 2019 coincided with the start of the prolonged pandemic shutdown and the subsequent economic downturn, the final tax paying date for July 2020 was July 17, a pushback of over three months.
It is definite that filers who delay filing their income tax returns will get their money back either through a stimulus check or through a direct bank transfer. But the amount and the chances of getting paid depend on whether they owe the government any taxes.
For those taxpayers who have failed to clear their payments, the refund will be linked to any anoint that such taxpayers might owe to the IRS or any other state tax agency. The amount might thus be used to offset even unpaid child support or even previous federal debts. This includes student loans.
The agency has also noted that it could hold on to the 2019 refund stimulus check if people only file their 2019 income tax return but fail to file their income tax return for 2020 and 2021.
For people who have filed they have lost payment records for the previous years, they can obtain such information from the IRS itself and the information will be in the form of a transcript.
Despite Most State Stimulus Checks Being Discontinued, Some States Continue To Declare Fresh Payments
The issue of stimulus checks have turned into a footnote in 2023, but payments continue to be declared that will cover 2023 and may well move into 2024, the year the next presidential elections are up for due.
A number of states have come up with fresh proposals at the end of the last quarter of 2022 and the payments are expected to continue through 2023. Though the deadlines for most of these payments are past and the money distributed, a handful of American states and cities have in recent weeks authorized fresh rounds of stimulus checks that have gone out in the form of tax rebates, stimulus checks, and direct bank credit to beneficiary accounts.
Among the few states and local governments support residents in 2023, the Idaho legislature passed a bill authorizing a tax rebate to full-year residents of the state. The bill was signed by Gov. Brad Little. The special session rebate approved the greatest of the following options.
It is either $300 for individual filers that include head of household, qualifying widowers and widows, married couples filing separately, and individual filers. For married couples filing jointly it is double that amount.
The second option is 10% of the tax amount as reported on line 20 of Form 40 or line 42 of Form 43 for eligible service members who use that form.
The second of the options is the amount of the 2022 rebate, whichever is greater. It is either $75 per taxpayer and each of the dependents in that family or 12% of the tax amount as reported in line 20 of Form 40 or line 42 of Form 43 for eligible service members.
Any Idahoan is eligible for the tax rate if they have lived the full year in 2020 and 2021. They should also have filed a state tax return or a Form 24 for the above years. Non-residents and also part-time residents are not eligible for the Idaho state stimulus check.
They can also be a full-year resident, who is someone who is domiciled in Idaho for the full period of the tax year being considered.
Domicile is considered the place where the beneficiary has their permanent home and intends to return once they have finished their job. It is considered the place which is the center of the taxpayer’s business and personal life.
For those who are station in the state on active military duty, they are considered a resident of the state where they are domiciled.
