Every year, thousands of taxpayers in the United States fail to claim the tax refunds to which they are entitled. For the 2021 tax year, the Internal Revenue Service (IRS) has announced that more than 1.1 million people could be leaving money that belongs to them on the table. But there is a crucial deadline: April 15, 2025, after which these funds will become the property of the federal government.
With an average refund of $781 per taxpayer, the IRS calculates that the total amount of unclaimed refunds surpasses $1 billion. Crucially, this sum excludes other benefits like the Earned Income Tax Credit (EITC) and Recovery Credit, which might greatly raise the amount that some people are eligible to receive.
Failing to file a tax return not only means losing out on a potential refund, but also missing out on benefits that could help improve the financial stability of many families. Low- and middle-income workers may be eligible for the EITC, which in 2021 was worth up to $6,728 depending on the number of children and the taxpayer’s marital status.
How to claim a IRS 2021 refund before the deadline?
For those who have not filed their 2021 tax return, the process may seem complicated, but there are several options to make it easier.Gathering the required paperwork, such as W-2, 1099, 1098, or 5498 papers, which can be acquired from banks, companies, or other organizations who first gave them, should be your first step.
To assist taxpayers in retrieving this data, the IRS also provides online resources. Through their Individual Online Account, people can access transcripts of past tax returns and verify their tax history. In addition, it is possible to request a transcript by mail or even file Form 4506-T to obtain a detailed summary of the income received in that year.
The #IRS estimates $1 billion in refunds remain unclaimed because people haven’t filed their 2021 tax returns yet. File today and claim your refund: https://t.co/9zaP8nSc3h pic.twitter.com/rYGBqZmT7Y
— IRSnews (@IRSnews) March 31, 2025
Since the process can take weeks, it is imperative that you move swiftly. In addition to receiving a refund, timely filing of the return helps you prevent issues with subsequent returns or potential withholdings from IRS payments.
This could influence in the IRS Refund
While many taxpayers will be able to get their money without any problems, some may face withholdings or offsets of their refund. For example, if a person has outstanding debts with the IRS or state agencies, such as back taxes or unpaid child support, the refund may be automatically applied to cover those obligations.
It’s also crucial to note that the IRS may delay the refund until all of the taxpayer’s tax obligations are current if they haven’t submitted their 2022 or 2023 taxes. This emphasizes how crucial it is to file taxes on time, even if there was insufficient revenue in some years to necessitate a formal return.
The IRS advises starting to collect the required paperwork now rather than waiting until the last minute to prevent losing these refunds. For many people nationwide, a few minutes of paperwork today might result in hundreds or even thousands of dollars being returned.
