WASHINGTON, D.C. — The Internal Revenue Service (IRS) has announced that over 1.1 million taxpayers nationwide have yet to claim their 2021 tax refunds, amounting to more than $1 billion. Affected taxpayers must submit their 2021 tax returns by April 15 to secure their refunds before the funds are forfeited to the U.S. Treasury.
The IRS estimates the median refund for 2021 is $781, meaning many taxpayers may be leaving significant amounts unclaimed. For low- and moderate-income workers, additional financial support may be available through the Earned Income Tax Credit (EITC), which was worth up to $6,728 for eligible families in 2021. Filing a tax return is the only way to receive these funds and other withheld or paid taxes for that year.
“Being late to file doesn’t have to mean losing out on your hard-earned money,” the IRS stressed, urging taxpayers to act quickly to make the deadline. By law, taxpayers have a three-year window to file and claim refunds, with the window for 2021 returns closing this spring.
The consequences of not filing go beyond missing a refund check. For taxpayers who have not submitted returns for 2022 or 2023, 2021 refunds may be withheld until compliance with filing requirements is achieved. Refunds can also be offset to satisfy outstanding federal or state liabilities, such as unpaid child support or student loans.
The IRS has provided several resources to help taxpayers obtain necessary documents to file their 2021 returns. Taxpayers can create or log in to an Individual Online Account at IRS.gov to access past tax records, such as Forms W-2 and 1099. Alternatively, they can use the IRS’s “Get Transcript” service or request copies of wage and income transcripts by filing Form 4506-T. It is recommended that taxpayers act promptly, as some requests may take weeks to process.
The IRS also reminds taxpayers of crucial EITC eligibility thresholds for 2021, which include income levels for households with or without qualifying children. These limits vary based on filing status and family size, ensuring financial relief reaches those who need it most.
With the deadline fast approaching, officials encourage individuals to act immediately to secure their rightful refunds. Taxpayers are advised not to delay, as failing to file by April 15 will result in unclaimed refunds being permanently relinquished to the U.S. Treasury.
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