Quote:
Originally Posted by jyl
Just never occurred to us. I knew she didn't owe and didn't need to file, but it never crossed my mind that the city of Berkeley (she works in a summer camp) would withhold taxes from a seasonal employee making $44/day.
Now she's making $100/day and it's starting to matter. I checked and 2014-2016 they withheld $500 federal plus some state, as a college kid she could use that money.
She paid for her recent year in Europe from her earnings and now she's pretty broke. Her job doesn't start up until June so she wants to make some money now. She's okay with borrowing money but wants to have a way to pay it back.
She has managed to make $500 in a month selling unused clothes and purses on Poshmark, including buying stuff cheap at Goodwill and reselling it for 2-3X.
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(From bold, above)
The regulations state that if there wasn't a filing, the statute of limitations on a refund is 2 years from the
date the tax was paid (withheld.) Since your daughter didn't file, that 2 year window began Dec. 31, 2015, and closes Dec. 31, 2017 Her earnings in 2014 are not subject to refund because it has been more than 2 years since the taxes were paid, that window closed on Dec. 31, 2016.
Here's what may be confusing. If she had
filed in 2015, that would be for her
earnings in
2014. The regulations state that if one
did file, then the statute of limitations on a refund is
3 years. She would be allowed to claim a refund on those 2014 earnings, and even 2013 if she filed for those in 2014. Since she did not file, however, the window of opportunity is from the date the taxes were paid, and that would be 2015.
Here's the actual regulation:
Claim must be filed within 3 years from the time the return was filed or 2 years from the time the tax was paid, whichever of such periods expires the later, or if no return was filed by the taxpayer, within 2 years from the time the tax was paid
https://www.irs.gov/businesses/exhibit-b-rc-refund-claims-limitation-periods-published-5-2008
So, limiting the amount withheld to 2015 and 2016, that is what she can file for, and is likely worth it, IMO.