NY FAMILIES COULD HAVE UP TO $50 MILLION IN UNCLAIMED TAX REFUNDS AND $500 MILLION IN UNCLAIMED TUITION TAX CREDITS OWED TO THEM; LAST CHANCE TO COLLECT CASH THEY'RE OWED FROM 2007 REFUNDS
Individuals Who Did Not File A 2007 Tax Return Have Only Days To Claim The Money They're Owed, Or Else It Stays In Washington For Good; Estimated $50 Million in Refunds Owed to New Yorkers
According To U.S. Treasury, Up To 57% of New Yorkers Didn't Take Advantage of College Tuition Tax Credit Last Year, Leaving Estimated $593 Million Unclaimed in New York City Metro Region
Schumer: Visit My Website for Easy How-To Info on Claiming 2007 Refunds, E-Filing 2010 Taxes For Free
With tax filing day approaching on April 18, U.S. Senator Charles E. Schumer announced on Sunday that New Yorkers could have tens of millions of unclaimed tax refunds and college tuition tax credits due to them. Schumer noted that approximately 40,000 New Yorkers have about $50 million in unclaimed tax refunds that must be claimed by April 18th, or else the money will be forfeited to the federal government. He also pointed out that New York families are eligible for potentially $590 million in tax credits that were not filed in 2009 and could be claimed on their 2010 tax returns.
"There are millions of dollars sitting in Washington that should be in family bank accounts in New York," said Schumer. "I want to make sure that all New Yorkers get every penny that they're owed come tax day, and I want to make it as easy as possible for them to do so. The clock is ticking, but with quick action, thousands of New Yorkers could put this money in their pockets where it belongs."
Unclaimed Tax Refunds:
According to the Internal Revenue Service (IRS) and 2010 Census data, an estimated 39,955 New York City, Long Island and Lower Hudson Valley families failed to file a 2007 tax return. Individuals have three years to file an old return and claim the refund that they're owed, meaning that this year is the last year that these tens of thousands of individuals can claim the millions of dollars they are owed from 2007.
In cases where a tax return has not been filed, the law provides most taxpayers with a three-year window of opportunity for claiming a refund. If no return is filed claiming a refund within three years, the money remains in the U.S. Treasury, permanently. There is no penalty for filing a late return that qualifies for a refund, and potentially hundreds of dollars to gain for eligible New Yorkers. Individuals looking to claim their 2007 refund must have filed returns for 2008 and 2009 to be eligible.
The IRS estimates that across the country, over 1 million individuals are eligible for over $1.1 billion in 2007 tax refunds, with over half of those funds valued at $640 or more. In New York, the median refund for unfiled 2007 returns is $706.
There are 39,955 New York City, Long Island, and lower Hudson Valley residents eligible for approximately $50,043,818 in 2007 tax refunds:
· In New York City, an estimated 26,409 individuals are eligible for over $33 million in 2007 tax refunds
· On Long Island, an estimated 9,151 individuals are eligible for over $11.4 million in 2007 tax refunds
· In the lower Hudson Valley, an estimated 4,395 individuals are eligible for over $5.5 million in 2007 tax refunds
Schumer announced that he has added new information to his website to assist New Yorkers as they seek to learn if they're eligible for a 2007 refund. On the front page of www.schumer.senate.gov , web browsers will find a new icon with a countdown clock reminding New Yorkers how long they have to claim old refunds. Clicking on the clock takes them to a one-stop clearing house with IRS contact information and more details to help individuals determine if they're eligible. Schumer's website also contains information on e-filing 2010 tax returns. Individuals who earned less than $58,000 in 2010 are eligible to file for free, and can access the necessary forms and information by visiting Schumer's website.
College Tuition Tax Credits:
Schumer also noted that families in New York City, Long Island, and the lower Hudson Valley, could have more than half a billion dollars in unclaimed college tuition tax credits available to them. The Schumer-authored tax credit provides middle class families with children in college with $1 back on their taxes for every $1 spent on tuition, up to $2,500 per year, per child. According to the United States Treasury, however, less than 50% percent of eligible families claimed the credit on their 2009 taxes. Last year's returns can still be amended, which means that New York families could be eligible for up to $593,131,248 million in savings.
In October of 2010 the U.S. Treasury released a report that shows that while the tax credit makes a big difference for those who take it, only 43% percent of eligible families in New York claim it on their tax returns. Because last year's tax returns can still be amended, that means that there is likely over half a billion dollars that New York, Long Island, and lower Hudson Valley families could claim tax credits for right now.
According to data compiled from the U.S. Treasury and the New York State Education Department, families in New York City, Long Island, and the lower Hudson Valley are estimated to have up to $593,131,248 in unclaimed tax credits from their 2009 tax filings. Those filings can still be amended when New Yorkers file their 2010 tax returns next week, putting money back in the pockets of middle class families.
· In New York City, families are estimated to have up to $418,058,424 in unclaimed college tuition tax credits
· On Long Island, families are estimated to have up to $121,122,162 in unclaimed college tuition tax credits
· In Westchester and Rockland Counties, families are estimated to have up to $53,950,662 in unclaimed college tuition tax credits
Free E-filing:
Senator Schumer also urges taxpayers to take part in E-filing their 2010 taxes for free, and offers instructions on his website. According to the IRS, nearly 100 million Americans have utilized e-filing. Schumer points out that the tax filing process is made far easier by e-filing, which includes answers to a variety of frequently asked questions, online fill-able forms, the ability to use direct deposit, and to pay electronically. On top of that, e-filing is considered the safest and fastest option for filing taxes. While the typical paper refund takes 6-8 weeks to receive, taxpayers who file electronically could see their refund deposited in their bank account in as little as 10 days. This service adds convenience and clarity to the tax filing process, and has continued to gain in popularity in recent years.