$47.4M in unclaimed 2015 tax refunds to expire

As Tax Day 2019 approaches, thousands of Ohio taxpayers are running out of a time to claim a tax refund from 2015. That’s because a three-year grace period provided by law is set to close on April 15.

About 43,600 Ohioans who never filed a tax return for 2015 are owed $47.4 million, the Internal Revenue Service said Wednesday. The median refund is $852.

If they don’t file by April 15, the money will go to the government.

There could be many reasons why a taxpayer didn’t file a tax return for that year.

These taxpayers may have thought there was no need to file because they were students, or because they had only a part-time, low-wage job. There’s no penalty for filing a late return if you’re owed a refund.

Overall, $1.4 billion in federal refunds is owed to an estimated 1.2 million U.S. taxpayers, according to the IRS.

There may be other reasons to file a return beyond claiming a refund.

Failing to file may mean missing out on more than just the refund of excess taxes paid that year. Some low- and moderate-income workers may be eligible for the Earned Income Tax Credit that could total thousands of dollars for families.

The IRS is warning taxpayers that it may hang on to their refund if they haven’t filed tax returns for 2016 and 2017. Also, the refund will be applied to any amount owed to the IRS or state tax agency, and may be used to offset unpaid child support or past-due federal debts, such as student loans.