Maui News

IRS has Refunds Totaling $7.8 M for Hawai‘i Residents who Have Yet to File 2017 Returns

April 5, 2021, 8:05 AM HST
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Unclaimed income tax refunds worth more than $7.8 million await an estimated 7,600 Hawaiʻi taxpayers who did not file a 2017 Form 1040 federal income tax return, according to the Internal Revenue Service. The median potential refund for impacted Hawaiʻi residents in $913.

Nationwide, there is an estimated $1.3 billion in unclaimed refunds for an estimated 1.3 million taxpayers who did not file their 2017 federal income tax return, according to the Internal Revenue Service.

“The IRS wants to help taxpayers who are due refunds but haven’t filed their 2017 tax returns yet,” said IRS Commissioner Chuck Rettig. “Time is quickly running out for these taxpayers. There’s only a three-year window to claim these refunds, and the window closes on May 17. We want to help people get these refunds, but they will need to quickly file a 2017 tax return.”

The IRS estimates the midpoint for the potential refunds for 2017 to be $865 — that is, half of the refunds are more than $865 and half are less.

In cases where a federal income tax return was not filed, the law provides most taxpayers with a three-year window of opportunity to claim a tax refund. If they do not file a tax return within three years, the money becomes the property of the U.S. Treasury. For 2017 tax returns, the window closes May 17, 2021, for most taxpayers. The law requires taxpayers to properly address, mail and ensure the tax return is postmarked by that date.

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The IRS reminds taxpayers seeking a 2017 tax refund that their checks may be held if they have not filed tax returns for 2018 and 2019. In addition, the refund will be applied to any amounts still owed to the IRS or a state tax agency and may be used to offset unpaid child support or past due federal debts, such as student loans.

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By failing to file a tax return, people stand to lose more than just their refund of taxes withheld or paid during 2017. Many low- and moderate-income workers may be eligible for the Earned Income Tax Credit (EITC). For 2017, the credit was worth as much as $6,318. The EITC helps individuals and families whose incomes are below certain thresholds. The thresholds for 2017 were:

  • $48,340 ($53,930 if married filing jointly) for those with three or more qualifying children;
  • $45,007 ($50,597 if married filing jointly) for people with two qualifying children;
  • $39,617 ($45,207 if married filing jointly) for those with one qualifying child, and;
  • $15,010 ($20,600 if married filing jointly) for people without qualifying children.

Current and prior year tax forms (such as the tax year 2017 Form 1040, 1040A and 1040EZ) and instructions are available on the IRS.gov Forms and Publications page or by calling toll-free 800-TAX-FORM (800-829-3676).

Taxpayers who are missing Forms W-2, 1098, 1099 or 5498 for the years 2017, 2018 or 2019 should request copies from their employer, bank or other payer. Taxpayers who are unable to get missing forms from their employer or other payer can order a free wage and income transcript at IRS.gov using the Get Transcript Online tool. Alternatively, they can file Form 4506-T to request a wage and income transcript. A wage and income transcript shows data from information returns received by the IRS, such as Forms W-2, 1099, 1098, Form 5498 and IRA contribution information. Taxpayers can use the information from the transcript to file their tax return.

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First-time filers and EIP eligible

The IRS reminds first-time filers and those who usually don’t have a federal filing requirement that they must file a 2020 tax return to claim the Recovery Rebate Credit (RRC), if they were eligible but did not receive the first or second Economic Impact Payment (EIP), or received less than the full amounts. The IRS offers free options to prepare and file a return at How to File on IRS.gov. Taxpayers who received the full amounts of both EIPs cannot claim the RRC and should not include any information about the payments on their 2020 tax return.

State-by-state estimates of individuals who may be due 2017 income tax refunds

State or DistrictEstimated Number of IndividualsMedian Potential RefundTotal Potential Refunds*
Alabama21,700$848$21,542,300
Alaska5,000$960$5,527,400
Arizona32,900$766$30,655,500
Arkansas12,600$811$12,150,900
California132,800$833$129,793,500
Colorado27,000$813$26,020,400
Connecticut13,200$928$13,945,100
Delaware5,200$853$5,254,600
District of Columbia3,600$878$3,765,500
Florida89,600$870$89,767,400
Georgia46,300$791$44,234,300
Hawaii7,600$913$7,827,400
Idaho6,200$727$5,572,300
Illinois49,000$901$50,355,300
Indiana30,800$894$31,291,100
Iowa13,500$922$13,851,800
Kansas13,400$865$13,313,500
Kentucky17,700$875$17,612,600
Louisiana21,700$837$21,659,900
Maine5,300$853$5,158,000
Maryland26,700$872$27,241,700
Massachusetts28,000$978$30,469,100
Michigan43,100$863$43,189,300
Minnesota20,400$808$19,400,200
Mississippi11,800$776$11,087,800
Missouri30,500$831$29,778,200
Montana4,400$808$4,255,500
Nebraska7,200$853$6,982,000
Nevada15,500$845$15,310,600
New Hampshire5,900$968$6,391,000
New Jersey34,200$924$35,778,700
New Mexico9,000$837$8,913,100
New York66,700$956$71,361,600
North Carolina43,500$837$42,307,200
North Dakota3,600$958$3,779,100
Ohio48,700$852$47,892,500
Oklahoma19,800$869$19,890,300
Oregon21,200$765$19,733,900
Pennsylvania50,900$931$52,861,200
Rhode Island3,600$921$3,792,500
South Carolina16,800$768$15,740,900
South Dakota3,600$912$3,665,500
Tennessee27,100$851$26,534,100
Texas133,000$904$138,355,200
Utah11,100$771$10,251,900
Vermont2,600$852$2,505,200
Virginia36,600$827$36,159,900
Washington36,900$928$38,924,900
West Virginia6,400$946$6,769,600
Wisconsin18,900$798$17,759,900
Wyoming3,100$944$3,273,400
Totals1,345,900$865$1,349,654,800
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