$1.5 Billion in Tax Refunds Will Be Lost on July 15, 2020

Did you file a federal return in 2016? If not, you could be at risk of forfeiting your share of more than $1.5 billion in possible refund dollars. $1.5 billion is a LOT of money and the IRS is urging taxpayers who have not yet claimed their 2016 refund to do so before July 15, 2020, without penalty. While there isn’t penalty for filing a late return when a refund is involved, you are subject to an assessed a penalty if you owe taxes and have not paid them.

The IRS estimates that 1.4 million taxpayers are eligible for a total of more than $1.5 billion from the 2016 tax year and the deadline for filing and claiming your portion of that money is July 15, 2020.

According to the IRS,  if you did not file a 2016 tax return, you could be leaving an average of over $861 on the table. While several important tax credits and deductions available in 2016 have since expired, taxpayers who file a 2016 return now are still allowed to claim them.

Examples of 2016 tax provisions that are still available to be claimed, provided the appropriate return is filed by July 15, 2020, include:

• Earned Income Tax Credit
• Child Tax Credit
• Other Dependent Credit
• Education Tax Credits

It’s important to note that this list of potential tax benefits is not only for those who did not file in 2016. Taxpayers who feel they qualified for deductions or credits that were not claimed on their original return can file an amended 2016 tax return before July 15, 2020.

Be sure to speak with a knowledgeable tax preparer to see if this may be the right approach for you. This year, you have even more options than ever before to file taxes with Jackson Hewitt:

• If you feel uncomfortable sitting in an office, you can securely file through Document Drop Off
• Online Tax Pro allows you to work with a Jackson Hewitt Tax Pro from the comfort of your home
• If you are fine with heading out, our offices are open, and available for appointments

Ready to learn more? Visit JacksonHewitt.com and schedule an appointment with a trusted tax pro today.

About the Author

Mark Steber is Senior Vice President and Chief Tax Officer for Jackson Hewitt. With over 30 years of experience, he oversees tax service delivery, quality assurance and tax law adherence. Mark is Jackson Hewitt’s national spokesperson and liaison to the Internal Revenue Service and other government authorities. He is a Certified Public Accountant (CPA), holds registrations in Alabama and Georgia, and is an expert on consumer income taxes including electronic tax and tax data protection.

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