In most cases, refunds go unclaimed because taxpayers who don’t make a lot of money and may not meet the IRS requirement to file a tax return are actually entitled to a tax refund, but since they never file a return, they can’t claim that money. Another tax break that taxpayers miss is the Earned Income Tax Credit, or EITC. This is a tax credit, not deduction, that’s available to many lower-income taxpayers, and this credit often goes unclaimed.

If this sounds like you, it’s time to get to work so can you claim what’s rightfully yours this tax season and even for previous tax seasons. One thing to keep in mind is the IRS places just a three year window on claiming these past refunds. After that time elapses, the money goes to the U.S. Treasury. You’ll also want to note that if you want to claim a refund from two or three years ago, you’ll likely need to make sure all subsequent year tax returns have been filed in order for the funds to be released.

Unfortunately, if you’re thinking about claiming a potential refund that may be a few years old, that can be troublesome if you haven’t kept good records. As you know, preparing a tax return takes a little time and usually requires some documentation that records your income and taxes paid throughout the year, so coming up with W-2 and 1099 forms a few years after the fact may be an issue.

This is why it’s important to keep all tax-related documents in a safe place for at least 3-7 years. So, check your file cabinets and dig through the box of papers in the closet to see if you can come up with what you need. If you can’t, the next step would be to contact your employer at the time in question and request copies of the forms. If these efforts are unsuccessful, you can get a free transcript showing information from these year-end documents by ordering it on IRS.gov, filing Form 4506-T, or by calling 800-908-9946.

Keep in mind, the average unclaimed tax refund is over $600. So, think about your situation and decide if doing a little legwork to track down documentation and filing old tax returns is worth it.  Also, don’t miss out on your tax refund for the present tax year.  TurboTax can help you easily file your taxes for this tax year as well as previous tax years.

Last updated 2/15

Congratulations on finishing your taxes!

We know how important your tax refund is to you. Good news, the IRS started processing tax returns on January 30th.   Returns will be processed in the order they were submitted and as soon as your tax return is accepted, we will notify you by email.   This notification could take up to 48 hours.

The IRS estimates that you should receive your tax refund within 21 days of your return being accepted.  The IRS issued more than 9 out of 10 refunds in less than 21 days last year and expects the same results this year.

Once your tax return has been accepted by the IRS, you can track the status of your refund by logging into your MyTurboTax account or checking the IRS Where’s My Refund Tool.

IRS Update:  The IRS announced today that they are experiencing high traffic on their Where’s My Refund Tool.  As a result, there may be limited availability during busier periods. The IRS has asked the entire tax industry to remind customers to only check Where’s My Refund once a day. IRS systems are only updated once a day, usually overnight.

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Here are five intriguing possibilities for passing the time:

Last-Minute Tax Prep

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Unfortunately, for some of us, the extra two days of filing time will be used finishing your tax return that would’ve been late under the normal deadline.

If this is you, don’t be too hard on yourself. It would have been preferable to finish early (and have the options below at your disposal) but instead of dwelling on leisure time lost, see these extra two days as your “get out of jail free” card—a rare opportunity to get away with waiting until the last minute.  Plus, preparing your taxes with TurboTax is easy even if you do wait until the last minute.

Spending Your Refund

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Those of you who did file early have something even sweeter than a two-day break: your refund check! Whether this year’s refund was $200 or $2,000, all that matters now is how you will spend it. The possibilities are endless and vary based on your priorities for the money. Are you behind on debt, and looking to chip away at the barriers holding you back from financial freedom? This weekend is the perfect time to sit down and pay some long-overdue bills.

Or, are you all caught up financially, but dying to make a long-delayed “impulse purchase?” Maybe it’s a new TV, or some new threads for your wardrobe. Whatever the case may be, this is the time to indulge—you’ve earned it! Use this weekend to invest your refund check wherever it will provide the best return.

Purposeful Relaxation

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Nearly all of us are guilty of putting relaxation on the back burner. In the rush to get all our ducks in a row, we push ourselves relentlessly, treating as luxuries such basic necessities as restful sleep or time to unwind. Yet, in the process, we deprive ourselves of the opportunity to recharge, to unburden ourselves from the many stressors, obligations, and worries that fill our minds and simply “be.”

Far-fetched or unnecessary as it may seem, research shows that relaxation is actually essential to well being. In addition to our work capabilities, we are also emotional and curious beings with needs that stretch far beyond productivity. To that end, spend your two free days immersed in relaxation: visit a day spa, get a massage, or simply sprawl out on the couch and enjoy an engrossing movie. Your mind and body will thank you for it.

Taking a Weekend Road Trip

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As humans, we are creatures of habit. We take comfort in familiar surroundings, routines, and activities that give structure and meaning to each day. Yet, at a certain point, habit begins to harm us rather than help. If we never push beyond our comfort zones or expose ourselves to any new experiences, our brains start to stagnate, becoming mired in the apathy and boredom that mind-numbing predictability creates. To dig ourselves out, we need a potent dose of the unfamiliar.

Now, we’re not saying the 9-5 office worker needs to reinvent himself as a starving artist. It can be a much smaller change: like taking a weekend road trip. With the extra two days this year’s tax deadline affords you, why not venture out onto the open road? Visit a popular landmark in the next state over. Travel to a town you’ve never seen before, and eat at one of the restaurants. The simple act of seeing and experiencing something new will stir the neurons in your brain like nothing at home will.

Resurrecting a Neglected Hobby

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In the noisy chaos of daily life, nothing feels less important than our hobbies. No one nags you about not practicing your guitar often enough, or failing to hike as frequently as possible. And of course, it’s good to be on top of the things that matter in your professional life. But it’s when you ignore your hobbies too much, that you’ve become a workaholic, and must get back in touch. The world is perfectly happy to let you bury your passion beneath its demands. If you want to avoid feeling like a lifeless automaton (productive but totally lacking in the soul-stirring excitement that makes life worth living) you need to actively and zealously make time for your passions.

Now is a perfect time to start. With two free days at your disposal, resolve to guiltlessly resurrect a hobby you’ve been sacrificing. And don’t just pick up your instrument or head to the batting cages: do it with gusto and enthusiasm, remembering that these activities supply your zest for living.

The IRS has updated it’s Where’s My Refund site with additional FAQs: http://www.irs.gov/newsroom/article/0,,id=254102,00.html

Some taxpayers who filed electronically and received an acknowledgement from the IRS are concerned when they visit “Where’s My Refund” and are told that IRS has no information regarding their tax return. The IRS informed us on February 10 that this is a temporary situation and should be resolved in several days.  At that time, you will be able to get an expected refund date when you visit “Where’s My Refund.”

This is an IRS issue and impacts returns regardless of who sends them in
to the IRS. This is not a TurboTax issue.

If you have received an acknowledgment of your tax return from the IRS, then the IRS assures us they have received your return and are processing it.

Information on the status of your refund will be updated in “Where’s My
Refund” once your return processes. This is a temporary situation, and we expect to resolve the matter in a few days.

IRS expects the vast majority of tax refunds to continue to be issued
within the historical range of 10 to 21 days.

We want to quickly share any updates we receive through IRS because we know many of you are still waiting for  your refund status and estimated direct deposit date.  We really appreciate your patience in this really frustrating time and we’ll continue to provide updates as we receive them from IRS.

So you filed your 2010 tax return and now your wondering, “Dude, Where’s My Refund?“  Possibly, your tax refund is one of the checks out of $153 million in undeliverable tax refund checks just announced by the IRS, with an average refund  totaling $1,547 this year!

Undeliverable Tax Refunds

Only a small percentage of checks mailed out by the IRS were returned as undeliverable, but 99,123 taxpayers’ 2010 tax refunds could not be delivered because of mailing address errors.  With Christmas coming soon and the tough economy, you need your money as soon as possible.  So how can you track your tax refund and how can you avoid this problem in the future?

How to Track Your Undeliverable Refund?

If you believe your tax refund may have been returned to the IRS as undeliverable:

• Use the IRS “Where’s My Refund?” tool.  The tool will provide you with the status and, in some cases, may give you instructions on how to resolve delivery problems.
• Call the telephone version of “Where’s My Refund?” at 1-800-829-1954

How Can You Avoid Undeliverable Tax Refunds In the Future?

Here are steps to take to ensure you receive your 2011 tax refund:

• E-file your return – E-filing with tax software like TurboTax eliminates the risk of lost papers and errors.  When you paper file there is no way to verify when, and if, your tax return is received or whether or not your tax return has errors.  When you e-file, you receive confirmation from the IRS that your tax return is received and accepted.  The IRS also recommends that you file your tax return electronically and supports tax software like TurboTax.
• Direct Deposit your Refund Check – Last year, more than 78.4 million taxpayers chose to have their refund checks deposited directly into their bank accounts.  TurboTax gives you the option to deposit your tax refund directly into your bank account or you can request to have your tax refund placed directly on the TurboTax Refund Card.

The combination of e-file and direct deposit is the best option to avoid undeliverable tax refund checks and TurboTax makes it easy!

Nearly 8 out of 10 taxpayers chose to e-file for tax year 2010 and that number is expected to increase for tax year 2011, so what are you waiting for?  Make your plans to e-file and use direct deposit for tax year 2011.