The IRS has announced that there is $1.1 billion (yes, with a b) waiting for nearly 1.1 million people who did not file a federal income tax return for 2007. The last day to file and receive a refund for 2007 is April 18, 2011 – otherwise, that money goes back to the U.S. Treasury.
Refunds aren’t automatically issued. You have to file a federal income tax return in order to qualify. Some taxpayers don’t realize that they might qualify for a refund and don’t bother to file a return. Those include folks who might be eligible for the Earned Income tax Credit (EITC) or other credits, like the Making Work Pay Credit. It would also include taxpayers who might have too much withholding.
If you’re not sure whether you would be eligible for a refund, run the numbers and see. It can’t hurt (there’s no penalty, for example, for filing a late return when you’re due a refund). And you might end up with a few more dollars in your pocket this year!