Don’t Miss Out: Refunds, Credits, and Back Tax Tips

It’s April 15, and you still haven’t gathered your receipts, can’t find your W-2 or 1099, or maybe you just think you didn’t earn enough to worry about filing.

You are not alone. According to the IRS, more than 11 million taxpayers failed to file a federal tax return in 2022. For many, it’s not about avoiding taxes...it’s confusion, missing paperwork, or simply falling behind because life gets in the way.

If you haven’t filed in a while, you might be asking yourself: How many years do I need to catch up on? Can I still claim refunds? How do I calculate taxes owed? This guide provides a clear, high-level overview of what you need to know about back taxes, and how to get back on track.

IRS Requirements for Filing Back Taxes

The IRS generally expects taxpayers to submit the most recent six years of tax returns to be considered compliant. This “six-year rule” is an administrative guideline, not a law. In other words, it’s meant to provide guidance, not act as a strict requirement. Depending on the situation, like cases of fraud, substantial underreporting, or criminal investigations, the IRS may request more years of filings.

Failing to file can result in penalties, interest, collection actions such as liens or levies, and, in rare cases, criminal charges.

For example, a single parent received a notice from the IRS claiming a tax debt she couldn’t possibly afford. She was unemployed, on disability, and caring for a special-needs child. By reviewing her account and working directly with the IRS, Northeast New Jersey Legal Services discovered that a fraudulent return had been filed using her personal information. She was a victim of identity theft. Within weeks, all fraudulent activity was removed, and her tax liability was eliminated.

Time Limits for Claiming Refunds and Credits

Many taxpayers miss out on refunds and credits they’re entitled to simply because they never file a return. Often, this is because they aren’t aware they qualify or aren’t sure how to claim them.

In fact, IRS data show that roughly 1.1 million people still hadn’t claimed more than $1 billion in refunds from the 2021 tax year simply because they didn’t file a return. In addition, about one in five eligible taxpayers don’t claim credits like the Earned Income Tax Credit (EITC), leaving billions of dollars unclaimed each year.

But just because you haven’t claimed a refund yet doesn’t mean it’s gone.

Refund claims are generally limited to three years from the filing date, or two years from the date the tax was paid, whichever is later. If no return was filed, the claim must be made within two years of payment. Filing within these deadlines allows taxpayers to claim credits such as the Earned Income Tax Credit, Child Tax Credit, education credits, and withholding or estimated tax payments. Keep in mind that if you miss the deadline, you won’t be able to get these refunds.

A similar situation involved a mother who needed proof of income to secure a college scholarship for her daughter. Due to COVID-related delays, her tax returns weren’t processed for two years, and the family risked losing tens of thousands of dollars in financial aid. Working with the IRS and the Taxpayer Advocate Service, NNJLS helped get her returns processed quickly, and her daughter was able to start college on time.

Documents Required to File Back Taxes & Calculating Taxes Owed for Prior Years

To file back taxes, you’ll generally need:

• W-2s and 1099s for each year

• Prior-year tax returns, if available

If records are missing, IRS transcripts can help reconstruct income and verify information. You can request transcripts using Form 4506-T or online via the IRS Get Transcript service.

Taxes must be calculated year by year, applying the tax laws in effect for that specific year. Keep your records organized by year and apply deductions and credits according to the rules at that time.

Usually, new tax laws don’t apply to past years unless the law specifically says they do.

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Filing back taxes can feel overwhelming, but it doesn’t have to be. By understanding what the IRS expects, keeping track of deadlines, and gathering the right documents, you can take control of your tax situation. Many taxpayers face delays or confusion, just like the single parent who dealt with identity theft or the mother trying to secure a scholarship for her daughter, but with the right guidance and support, these challenges can be resolved.

Organizations like NNJLS are here to help families navigate the process, protect against financial harm, and make sure you don’t miss opportunities or refunds you’re entitled to. With careful planning, timely action, and the right resources, catching up on back taxes is not just possible, it can give you peace of mind and a fresh start.

To learn more, attend one of our “Know Your Rights” sessions or reach out for guidance and support.

This article was written by Rinu Cherian, Director of the Low-Income Taxpayer Clinics at Northeast New Jersey Legal Services (NNJLS).