tax-refund1

April 4, 2017

Time’s Running Out to Rescue 2013 Tax Refunds for Clients

There’s still time to be a “hero” to some of your clients, especially those who are relatively new to your firm. Taxpayers who are due a refund from 2013 have until April 18, 2017 – the deadline for filing 2016 federal income tax returns – to collect ...

There’s still time to be a “hero” to some of your clients, especially those who are relatively new to your firm. Taxpayers who are due a refund from 2013 have until April 18, 2017 – the deadline for filing 2016 federal income tax returns – to collect the amount they are due. After that date, the money is gone forever.

For instance, if you didn’t prepare a client’s 2013 income tax return, he or she may not even realize that a refund is available. The IRS is reminding taxpayers of this opportunity as the time to April 18 winds down (IR-2017-72, 4/3/17).

Generally, taxpayers have a three-year window of opportunity for claiming refunds. If they don’t act within three years, however, the money belongs to Uncle Sam. Normally, the due date for securing refunds for 2013 returns would be April 15, 2017 but the deadline was moved to April 18th this year because the 15th and 16th are weekend days and the 17th is the official celebration day for Emancipation Day, a holiday in our nation’s capital.

Some people, such as students and part-time workers, may not have filed a 2013 return because they weren’t required to do so because of their low income. They might have a refund waiting if taxes were withheld from their wages or they made quarterly estimated tax payments. Others may qualify for certain tax credits, such as the Earned Income Tax Credit (EITC), but they must file a tax return to claim this tax break.

Low- and moderate-income workers whose incomes fall below certain limits often qualify for the EITC. For 2013, the EITC was worth as much as $6,044. The income limits for 2013 were as follows:

  • $46,227 ($51,567 if married filing jointly) for those with three or more qualifying children;
  • $43,038 ($48,378 if married filing jointly) for people with two qualifying children;
  • $37,870 ($43,210 if married filing jointly) for those with one qualifying child, and;
  • $14,340 ($19,680 if married filing jointly) for people without qualifying children.

There’s no penalty for filing a late return if you’re entitled to a refund. The IRS estimates that half the potential unclaimed refunds are worth more than $763.

The IRS may also hold 2013 refunds if taxpayers haven’t filed tax returns for 2014 and 2015. The U.S. Treasury will apply the refund to any federal or state tax owed. Refunds may also be held to offset unpaid child support or past due federal debts such as student loans.

Get the word out: Inform clients about the April 18 due date for claiming a refund for a 2013 return. If they are able to cash in on an unexpected windfall, you’ll be sure to have their gratitude.

  

 

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