More than 1 million taxpayers are owed 2018 refunds, IRS says. Are you one of them?

Nearly 1.5 million taxpayers who didn’t file a federal income tax return in 2018 are owed a total of almost $1.5 billion in unclaimed refunds, the IRS says. But if you’re eligible to claim a missing refund, you only have a few weeks to act.

Legally, taxpayers have a three-year window to claim a tax refund, and if they do not file a return within that time frame, the U.S. Treasury keeps the money, according to the IRS.

To claim missing money from 2018, taxpayers must file by April 18, the IRS says. Residents of Maine and Massachusetts have until April 19.

Half of the missing refunds from 2018 are more than $813, according to the IRS. The median refund individuals are eligible for varies by state.

Eligible Alaska residents have the highest median potential refund at $969, while eligible taxpayers in Idaho have the lowest at $686, according to the IRS.

Low-income and moderate-income workers could also miss out on the Earned Income Tax Credit, which helps “workers and families get a tax break,” if they do not file a missing 2018 return on time, the IRS says. The credit was worth up to $6,431 in 2018.

In 2018, the income thresholds for the credit were:

▪ $49,194 for individuals and $54,884 for married couples filing jointly with at least three “qualifying children.”

▪ $45,802 for individuals and $51,492 for joint filers with two children.

▪ $40,320 for individuals and $46,010 for joint filers with one child.

▪ $15,270 for individuals and $20,950 for joint filers with no qualifying children.

Taxpayers seeking a missing refund from 2018 must also make sure they’ve filed returns for 2019 and 2020. If not, their refund checks from 2018 can be held, the IRS says.

Tax returns for 2018 must be filed with the IRS center listed on the last page of the Form 1040 instructions.

Those who need W-2, 1098, 1099 or 5498 forms should ask their employer, bank or “other payer” for a copy, the IRS says.

“The IRS wants to help people who are due refunds but haven’t filed their 2018 tax returns yet,” IRS Commissioner Chuck Rettig said in a statement. “But people need to act quickly.”

This story was originally published March 29, 2022 at 12:20 PM with the headline "More than 1 million taxpayers are owed 2018 refunds, IRS says. Are you one of them?."