Didn't File in 2010? You May Have Unclaimed Funds

A chunk of $760 million could be owed to you.

Mar 29, 2014 at 2:00PM


Source: The Motley Fool.

The IRS has $760 million that it would love to dish out to taxpayers. This $760 million fund owes to an estimated 918,600 citizens who did not file federal tax returns for the 2010 tax year. It sounds a little crazy, but there are actually some people who are not legally required to file a tax return each year. These people had incomes below a certain threshold and may have been students or part-time employees who did not realize they could still receive a refund if they filed their tax returns.

The law specifies a three-year statute of limitations for claiming tax refunds. This means that the deadline for submitting a tax return for the 2010 tax year is April 15, 2014. What happens to funds that go unclaimed? After the three-year window passes, all unclaimed tax refunds are considered the property of the U.S. Treasury. Not claiming your refund is a lot like paying real money for an imaginary tax.

"The window is quickly closing for people who are owed refunds from 2010 who haven't filed a tax return," said IRS Commissioner John Koskinen in a statement. "We encourage students, part-time workers, and others who haven't filed for 2010 to look into this before time runs out on April 15."

For those who qualify for a refund, more than half will receive disbursements of over $571. If you did not file a tax return for 2010 because you had too little income, then hop to it before time runs out! Remember that even if you did not earn enough money to file, you likely still had wages withheld from employers or could qualify for other tax credits.

One of the most commonly missed tax credits for those who did not file a return is the Earned Income Tax Credit (EITC). This credit supports low- and moderate-income workers and provides a refund of up to $5,666. The 2010 income thresholds for the EITC were:

  • $43,322 for taxpayers with three or more qualifying children.
  • $48,362 for married joint filers with three or more qualifying children.
  • $40,363 for taxpayers with two qualifying children.
  • $45,373 for married joint filers with two qualifying children.
  • $35,535 for taxpayers with one qualifying child.
  • $40,545 for married joint filers with one qualifying child.
  • $13,460 for individuals without children.
  • $18,470 for married joint filers without children.

The good news is that there is no penalty for filing a late return for a qualifying refund. However, the IRS can withhold refund checks under certain conditions. If you did not file returns for 2011 or 2012 (and were obligated to do so), the IRS may not disburse your refund. Additionally, the refund amount gets applied to any taxes you may owe and can be spent toward unpaid child support before it gets to the taxpayer.

If you did not file a 2010 tax return, don't wait! It is easy to file a 2010 tax return. Taxpayers can access the appropriate forms on the IRS website or call 800-TAX-FORM (800-829-3676). If you are missing your 2010 W-2 form(s), you can request them from your employer and read this Fool.com article about obtaining W-2s. If your previous employer is supremely uncooperative, you can request a free transcript from the IRS online or file Form 4506-T.

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4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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