If you are someone who didn’t submit your tax return, it is likely that you have overlooked a sum of money. According to the Internal Revenue Service (IRS), more than 1.1 million Americans who are still able to reclaim tax refunds of the 2021 tax year have just been determined. The median amount of the refund is $781, and the deadline for filing is April 15, 2025.
If you do nothing on expiry, it is U.S. Treasury that gets the money, and therefore, the chance is over for you to recover it. What follows is a detailed account of what the refund is, who is qualified, and how to be with time in the filing process.
What is this unclaimed refund about?
Every year, some people in the U.S. either neglect or postpone the filing of their tax returns. In those cases, the IRS awaits the return of the funds for up to three calendar years. In the absence of such a claim, the money will be lost permanently.
In a press release from the IRS last week, the Internal Revenue Service has disclosed that more than $1.1 billion is there in unclaimed refunds from the year 2021. In fact, the average refund is estimated to be around $781 which means about half of those who qualify could get more.
There is no more time.
The last day for submission is the 15th of April 2025
It shall be your responsibility to file a 2021 tax return to claim a 2021 refund by April 15, 2025. If you don’t, you are saying goodbye to the money. The statement of the IRS says that the following cases can be incidents where refunds are waiting to be returned:
- Earned less than a minimum amount that requires filing but paid tax
- Couldn’t meet the initial deadline due to personal
- Were unaware of refundable tax credits such as the Earned Income Tax Credit (EITC)
If you didn’t have to, you still might want to take a look at it; after all, there might be hundreds of dollars that you’re owed up to thousands.
Who Is Eligible to Claim?
If you:
- fulfilled the 2021 income requirement
- did not 2021 file a tax return
- The IRS owes you a refund on the basis of your earnings and withholdings
You can e-file your 2021 Form 1040 even if the returns for 2022 and 2023 were mailings. However, if you also did not do the latter, then the IRS might hold your 2021 refund until you mail the returns.
Go to the IRS official refund page to look at your eligibility and to be informed more on how to file earlier returns.
States With the Most Unclaimed Refunds
The sums of refunds unclaimed differ from state to state. In California, the figure is over 116,000, and these people are sharing the happy fate of becoming the owners of those figures. The total refund pool for California residents is over $92.3 million, according to San Francisco Chronicle
Some of the other states with significant refunds include:
- New York
- Illinois
- Florida
- Texas
For further details, you may visit the local IRS office in your state or local taxpayer assistance center.
How to File a 2021 Tax Return
Filing a 2021 return is not difficult, but you need to keep your records from that year. Just go through the following steps:
- Collect your W-2s and 1099s from 2021.
- Download the IRS Free File tool or communicate with a tax preparer whom you know and trust to get an explanation of your tax situation and the best course of action to take to prepare and file your taxes.
- Fill in the 2021 version of Form 1040.
- Be sure to fill in the information that your bank will need for electronic deposit, if needed.
If you are without essential documents, you may ask the IRS for a Wage and Income Transcript to achieve the necessary reconstruction of income.
Can You Receive More Than a Refund?
If over the course of 2021 you were eligible for the Earned Income Tax Credit (EITC), then your refund could increase by no less than $6,728. This tax credit, which is refundable, is intended for people who work and have low to moderate incomes.
Furthermore, those who hadn’t got their third stimulus payment have a chance to receive the Recovery Rebate Credit that equals one-time payment of $1,400 and, thus, might raise the refund amount. The corresponding section of the article from IRS gives information on these subjects.
Only One Last Reminder: Don’t Miss the Deadline on April 15
Once April 15 passes, not just the date itself but the exact moment when you hear the clock strike midnight, you already lose the right to the refund money. The refund automatically goes to the Treasury Department.
Don’t leave it to the last minute. The IRS advises that you file your tax returns electronically and also use direct deposit for a quicker processing and receipt of your refund.
Firstly, visit www.irs.gov to get the ball rolling and claim back the refund that you are owed from 2021.
