Earned Income Tax Credit, taxes withheld from people who didn't make enough to file likely explanations
WASHINGTON -- Refunds totaling $20.3 million may be awaiting 19,500 Louisiana residents who failed to file tax returns in 2007, according to the IRS.
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A man enters the Internal Revenue Service (IRS) building in Washington, D.C.The potential refunds, according to IRS (www.irs.gov) estimates, average $663.
The IRS says that taxpayers have only until April 18 to file their 2007 returns and collected any owed refunds.
Why haven't the taxpayers filed?
The IRS says for some people it might be because they didn't make enough income to pay taxes, and figured there was no reason to file -- even though they had some taxes withheld that year.
Others, low-income and moderate-income Americans, might not have known that they qualified for the Earned Income Tax Credit, which provides payments to some people even if they didn't owe any taxes that year. For 2007, the threshold to qualify for the credit was an income of up to $39,783 for households with two or more children, $35,241 for households with one child and $14,590 for people with no children.
Taxpayers missing income information for 2007 should try to collect it from their employers or banks. If that's not possible, the IRS can provide a transcript showing information provided the agency from employers and financial institutions for the year 2007. The number to call is 1-800-908-9946.
