The IRS is sitting on $92 million in unclaimed California tax refunds. How to know if you qualify
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A trove of cash could be forfeited if Californians fail to complete their 2021 tax returns by next month, according to the Internal Revenue Service.
The IRS is currently sitting on about $92.3 million, ready to be dispersed among 116,300 state taxpayers who have yet to file their returns for that tax year, the agency said in a news release Tuesday.
Returns must be filed by April 15. The estimated median refund for Californians whose returns are still outstanding is $600, according to the IRS.
Tax season is underway. The IRS has debuted a new online tool to help taxpayers check the status of any refund they may be entitled to.
How to know if you’re eligible
Californians can use the IRS2Go mobile app to verify eligibility, check their refund status, make a payment and find free tax services, according to the IRS.
Low- to moderate-income workers may also be eligible for the Earned Income Tax Credit, a refundable tax break. The refund credit is boosted if you meet certain requirements, have children or other dependents and or are disabled.
In 2021, the EITC for qualifying taxpayers with children was $6,728.
To check if you qualify, use the EITC Assistant on the IRS website, which will ask a series of questions to determine eligibility. The questionnaire does not require sensitive personal information, such as your name, Social Security number, address or bank account numbers.
Whether you were naughty or nice, if you never received your stimulus check in 2021, you are eligible for the Christmas cash infusion.
What happens if you miss the deadline
Any unclaimed refund money becomes property of the U.S. Treasury if taxpayers fail to file by the April deadline.
Refund amounts could also be lowered if you owe money to the IRS, have unpaid child support, or are past due on student loans. Money could also be withheld if you have not filed 2022 or 2023 tax returns.
How to obtain key documents
The IRS is urging taxpayers to collect past documents well in advance of the deadline, as some can take weeks to secure.
Here’s how to access important tax documents to file your 2021 taxes:
- Create an IRS online account, which allows you to view, download or print tax return records and transcripts of past returns, account information, wage and income statements and more. Keep in mind that transcripts are not a photocopy of past tax returns. To obtain a copy, submit a 4506 form to the IRS.
- Taxpayers can request copies of missing forms — such as a W-2, W-4, 1098, 1099 or 5498 — from their employer, bank or payroll service provider. If you are unable to access forms through an employer, you can request to have a transcript mailed to you, which can take five to 10 calendar days to arrive. As such a request will require you to provide sensitive information, the IRS recommends you close your internet browser immediately after submitting.
- A request can also be filed by calling the agency’s automated phone transcript service at (800) 908-9946.
There are plenty of things college students and their parents should keep in mind before filing taxes.
Where to file your 2021 taxes for free
Free tax services are available across Los Angeles County for people with qualifying incomes.
Free Tax Prep L.A. has dozens of sites across the county to help people who make less than $67,000 a year file their taxes for free. The program is run through the Volunteer Income Tax Assistance program, or VITA, which utilizes IRS-certified volunteers.
The Cal State Northridge VITA clinic has 14 locations in the San Fernando Valley offering free income tax assistance service to residents making less than $67,000 annually, according to the clinic’s website. Spanish interpretation is available at some locations.
Other universities are also offering free tax preparation services, including UCLA, Cal State Long Beach and Cal State L.A.
For more information on clinic hours, locations and language support, visit their websites.
Experts say layoffs of about 7,000 IRS workers probably mean an end to plans to target rich tax dodgers and could spell disaster for revenue collection.
The Sunland-Tujunga Branch Library is offering free tax services on Saturdays until April 12. Spanish and Armenian interpretation is available.
On the day of your appointment, make sure to bring the following items:
- Government-issued photo ID, driver’s license or passport.
- Social Security card or ITIN document.
- Income forms, such as a W-2, 1099 or 1098.
- Copies of additional income and expenses, if applicable — such as a 1098-T form for tuition fees, or documentation of daycare expenses.
- Bank account and routing numbers if you prefer a direct deposit refund.
- Previous tax returns may be helpful to complete the service.
For ITIN, or Individual Taxpayer Identification Number applications, bring an original or a copy of your passport, U.S. visa or driver’s license.
Michael Anderson and his wife, Kathy, spun his tax preparer’s electronic “prize wheel” and won a promise from the company to double their refund.
How to avoid scams
The IRS will never contact you via social media, offer gift cards, threaten to call law enforcement or immigration officials, take away your driver’s license, leave pre-recorded voicemails, or mail tax debt resolution advertisements.
If you were scammed, you can visit the Federal Trade Commission’s IdentityTheft.gov website.
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