Claim Your 2009 Tax Refund Before It Disappears

Stacks of U.S. one-dollar bills are arranged for a photograph in New York, U.S., on Monday, Feb. 4, 2013. Stocks tumbled the most this year and the euro slid while Spanish bond yields surged amid renewed concern about Europe's debt crisis. Ten-year U.S. yields lost six basis points to 1.96 percent. Photographer: Scott Eells/Bloomberg via Getty Images
(Scott Eells/Bloomberg via Getty Images)
Usually, taxpayers do everything they can to get their tax refunds as quickly as possible. Surprisingly, though, they've left more than $900 million on the table, and the IRS is poised to permanently grab that money next month unless they do something about it.

The IRS reported on Thursday that nearly 1 million taxpayers never filed a 2009 return, leaving a total of $917 million in tax refunds unclaimed.

The amounts involved are fairly large in many cases, with about half of the unclaimed refunds estimated to involve $500 or more. California and Texas had the biggest number of unfiled returns, but people from every state and the District of Columbia are on the list.

%VIRTUAL-pullquote- If you're concerned that you'll get in trouble for being so late, don't be. As long as you're due a refund, you won't owe any penalties.%With a three-year window to file returns, time is running out. Taxpayers who want to file returns that were originally due on April 15, 2010 have only until this April 15 to do so, or else they'll no longer be eligible to receive their refunds.

What You Might Have Missed

Part of the problem is that many taxpayers don't realize that even if they aren't required to file a return, they still need to do so in order to claim refunds that are owed to them. One of the biggest items people miss out on is the Earned Income Tax Credit, which can provide refunds even if you don't have any income tax liability.

If you're concerned that you'll get in trouble for being so late with your returns, don't be. As long as you're actually due a refund, you won't owe any penalties for filing a late return, as the calculations for determining a tax penalty are based on the tax you owed.

So if you never filed a 2009 tax return, be sure to look into whether you could get a tax refund back if you filed. Otherwise, what should be free money coming back to you will end up going to the federal government instead.

Tax Tips for Real Estate Agents and Brokers

Most real estate agents and brokers receive income in the form of commissions from sales transactions. You're generally not considered an employee under federal tax guidelines, but rather a self-employed sole proprietor, even if you're an agent or broker working for a real estate brokerage firm. This self-employed status allows you to deduct many of the expenses you incur in your real estate sales or property management activities. Careful record keeping and knowing your eligible write-offs are key to getting all of the tax deductions you're entitled to.

Read More

Brought to you by TurboTax.com

What is the Educator Expense Tax Deduction?

The Educator Expense Tax Deduction allows teachers and certain academic administrators to deduct a portion of the costs of technology, supplies, and certain training. Here’s what teachers need to know about taking the Educator Expense Deduction on their tax returns.

Read More

Brought to you by TurboTax.com

Self-Employed Less Than a Year? How to Do Your Taxes

Have you been self-employed less than a year? If you’re just starting out, it’s possible you worked at a job earlier in the tax year before making the switch to self-employment, or you’re working multiple jobs. In this case, you may have more than once source of income you’ll need to report on your income tax return.

Read More

Brought to you by TurboTax.com

Taxes for Grads: Do Scholarships Count as Taxable Income?

Heading off to college to broaden your horizons is exciting, but funding your education via scholarships? That's even better. Scholarships often provide a path to education that might not be feasible otherwise, which is why the Internal Revenue Service (IRS) can be generous in minimizing students' tax obligations. But sometimes scholarship money does count as income, and it’s better to find out now if your scholarship adds to your tax liability than to have a surprise later. Here’s how to decode your scholarship taxation.

Read More

Brought to you by TurboTax.com
Read Full Story
Your resource on tax filing
Tax season is here! Check out the Tax Center on AOL Finance for all the tips and tools you need to maximize your return.

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.