The Internal Revenue Service (IRS) has announced that more than 1.1 million Americans are owed unclaimed tax refunds for the 2021 tax year, but they must act fast. The deadline to submit a 2021 federal tax return and claim any refund is April 15, 2025.
Are You Owed Money?
According to IRS estimates, over $1 billion in unclaimed refunds remain up for grabs, with a median refund of $791 per taxpayer. That means half of the eligible refunds are higher than $791, while the other half are lower. However, the actual refund amount may be even larger depending on eligibility for credits like the Earned Income Tax Credit (EITC) or the Recovery Rebate Credit.
What Happens If You Don’t Claim It?
If taxpayers fail to file their 2021 returns within the three-year window, the unclaimed refunds will become the property of the U.S. Treasury. That’s free money lost forever!
Why You Should File – You Might Get More Than Just Your Refund
Many low- and moderate-income workers may be eligible for the Earned Income Tax Credit (EITC), which was worth up to $6,728 for the 2021 tax year. This credit is designed to assist individuals and families with earnings below certain thresholds:
- $51,464 ($57,414 if married filing jointly) for those with three or more qualifying children
- $47,915 ($53,865 if married filing jointly) for those with two qualifying children
- $42,158 ($48,108 if married filing jointly) for those with one qualifying child
- $21,430 ($27,380 if married filing jointly) for those with no qualifying children
Potential Delays and Offset of Refunds
The IRS warns that refunds may be held if you haven’t filed tax returns for 2022 and 2023. Additionally, any 2021 refund could be used to pay off unpaid federal or state taxes, child support, or overdue federal debts like student loans.
How to File Your 2021 Tax Return
Taxpayers who need to file a 2021 return can find the necessary forms and instructions at IRS.gov or by calling 800-TAX-FORM (800-829-3676). Here are some options to obtain missing tax documents:
- IRS Individual Online Account: Log in to IRS.gov to access transcripts of past tax returns, wage and income statements, and verification of non-filing letters.
- Contact Employers and Banks: If missing W-2s, 1098s, 1099s, or 5498s, request copies from the original issuer.
- Get Transcript by Mail: Use the Get Transcript by Mail tool on IRS.gov or call 800-908-9946.
- File Form 4506-T: This form requests a wage and income transcript from the IRS, which includes data from W-2s, 1099s, and more.
State-by-State Breakdown of Unclaimed Refunds
Below is a snapshot of the states with the highest number of unclaimed refunds:
- California: 116,300 individuals, median refund $600
- Texas: 102,200 individuals, median refund $810
- Florida: 69,800 individuals, median refund $732
- New York: 73,000 individuals, median refund $995
- Pennsylvania: 53,100 individuals, median refund $993
For a full breakdown by state, visit IRS.gov.
FAQ :
Who is eligible to claim an IRS refund for 2021?
Anyone who did not file their 2021 federal tax return and is owed a refund can claim it. The IRS estimates over 1.1 million people may qualify. You must file by April 15, 2025.
What is the deadline to claim my 2021 tax refund from the IRS?
You must file your 2021 tax return by April 15, 2025. If you miss this deadline, you forfeit your refund permanently.
How much money can I get back from my 2021 tax refund?
The median refund is $791, but some taxpayers may receive more depending on their income and eligibility for credits like the Earned Income Tax Credit (EITC).
What if I lost my W-2 or 1099 forms from 2021?
You can log into your IRS Individual Online Account to access tax documents. You can also request them from your employer, use the IRS’s Get Transcript by Mail tool, or file Form 4506-T for a wage and income transcript.
Can my refund be reduced if I owe taxes or other debts?
Yes. The IRS can use your 2021 refund to cover unpaid federal/state taxes, child support, or federal debts like student loans.
Can I still file electronically for 2021?
No, electronic filing is closed for 2021 returns, but you can still print and mail your tax return to the IRS.
What if I am due a refund but don’t file?
You’ll lose out on your money! Unclaimed refunds become property of the U.S. Treasury after three years.
Don’t Miss Out – File Today!
With over $1 billion in unclaimed refunds and a looming April 15, 2025, deadline, taxpayers should act now. Filing your 2021 tax return could put hundreds or even thousands of dollars back in your pocket. Don’t let the IRS keep your money – claim your refund before it’s too late!