If you did not file a federal tax return for 2021, you may be passing up hundreds of dollars — and the window to collect that money is closing rapidly. The IRS says more than 1.1 million Americans remain eligible for a 2021 refund averaging more than $780. And the total: a whopping $1 billion that will vanish into government coffers if not collected by April 15, 2025.
The Three-Year Rule
The IRS allows taxpayers three years to recover a refund. Once that’s past, the funds belong to the U.S. Treasury. That’s why the deadline for 2021 refunds is so important — the three-year limit officially ends on April 15, 2025. If you don’t file your 2021 return by that date, you forever lose your refund.
Who’s Owed a Refund?
People are eligible for refunds who made income in 2021 but didn’t do their taxes. These may be part-time employees, students, freelancers, or individuals who had taxes taken out of their paychecks but made less than the standard deduction amount. The IRS doesn’t fine individuals who don’t file when they’re due a refund — but they won’t remind you to claim it either.
Here’s the breakdown:
Over 1.14 million people haven’t claimed their refund for 2021.
The average refund is about $781, though amounts vary by state.
In California, more than 116,000 residents could collect a refund, with a total pool of $92.3 million.
In Texas, around 102,000 people are still owed money — nearly $95 million combined.
Even smaller states like Rhode Island and Hawaii have millions in unclaimed refunds.
How to Check if You’re Eligible
If you earned income in 2021 and did not file, see if you’re eligible for a refund. You may be if:
You had a job and federal tax was withheld.
You qualified for tax credits such as the Earned Income Tax Credit (EITC).
You lost out on the Recovery Rebate Credit, including any missed third-round stimulus payments.
The Recovery Rebate Credit is important. If you didn’t receive your full stimulus check last year, you might still be able to claim as much as $1,400 for yourself — or as much as $2,800 for couples, and more if you had children or dependents.
How to File a 2021 Return Now
A return filed from an earlier year is a bit more complicated than current-year taxes. Direct e-filing 2021 isn’t supported on most online tax software sites, but FreeTaxUSA and TaxAct let you prepare and print your return to mail.
These are the things you’ll need:
W-2s, 1099s, or other income statements for 2021.
Anything pertaining to deductions or credits, if you have any.
Access to your IRS online account, where you can see or download your previous tax documents.
If you don’t have your 2021 forms, no worries. You can log in to your IRS account online and get them. Just go to the Individual Online Account section on IRS.gov. There, you can download your W-2s, 1099s, and other required documents.
Don’t Wait Until the Last Minute
April 15th is already here. And although the IRS isn’t tracking down individuals who owe them money, they won’t wait around either. Once the deadline is up, there’s no appeal, no exceptions, and no extensions.
Being too slow also makes the filing process more difficult. Past tax records might be more difficult to find from old employers or banks. The sooner you move forward, the easier the process will be.
If you’re unsure about how to begin, consider using basic tax prep software or consulting with a tax professional. Even with some up-front effort, claiming a refund of $700 or more is worth the time.
Final Thoughts
It’s not common for the government to inform you that they owe you money. But that’s what’s occurring for over a million Americans. If you’re one of them, you have until April 15, 2025, to collect what’s yours. After that, the refund is lost forever.
Don’t let hundreds — or thousands — get away. Round up your documents, file that 2021 return, and lock in your refund before the deadline passes. All in all, the days are passing and hence you must follow the above-mentioned steps to get the IRS funds.
Credit Source: Unclaimed Tax Refunds From 2021: How to Claim Your IRS Refund Before April 15, 2025 | Taxfyle
