If you haven’t claimed your tax refund for the 2021 tax year, the clock is ticking. The Internal Revenue Service (IRS) has set a firm deadline of April 15, 2025, for taxpayers to file their 2021 tax returns and claim any refunds owed to them.
Under U.S. law, taxpayers have a three-year window to claim their refunds. After this period expires, any unclaimed tax refund money is transferred to the United States Treasury. Shockingly, the total amount of unclaimed refunds exceeds $1 billion, meaning thousands of Americans may be leaving money on the table.
IRS Estimates Median Refunds Are Worth $781
The IRS reports that the median tax refund for the 2021 tax year is approximately $781. However, some taxpayers may be entitled to even more money, especially if they qualify for certain tax credits.
Notably, this estimate does not include potential amounts from:
- Earned Income Tax Credit (EITC)
- Child Tax Credit (CTC)
- Recovery Rebate Credit (stimulus check payments)
- Other tax credits for eligible taxpayers
Unclaimed Refunds by State
The IRS has also released data on the number of taxpayers who have yet to file for their 2021 refunds, along with the estimated median refund amounts:
- New York: The highest median refund is in New York, where the IRS estimates a median refund of $995. About 73,000 New Yorkers have not claimed their 2021 tax refunds.
- California: The largest number of unclaimed refunds comes from California, with 116,300 taxpayers yet to file. However, the median refund in California is slightly lower, at approximately $600.
- Other States: Many other states have large numbers of unclaimed refunds, with potential refund amounts varying based on tax credits and income levels.
Why Haven’t People Claimed Their Refunds?
Many taxpayers may have overlooked their refund for several reasons:
- They didn’t file a tax return – Some individuals believe they don’t need to file if their income was low, but they may still be entitled to a refund.
- They forgot about tax credits – Many taxpayers don’t realize they qualify for valuable credits that can increase their refund amount.
- They lost their tax documents – Misplaced W-2s or other financial records may have prevented them from filing.
- They moved or changed contact details – The IRS may not have been able to reach them with refund reminders.
How to Claim Your 2021 Tax Refund
If you think you might be owed a tax refund from 2021, follow these steps before the April 15, 2025 deadline:
- Gather your tax documents – Look for your W-2s, 1099s, and any other income statements.
- Check your eligibility for tax credits – Research whether you qualify for EITC, CTC, or the Recovery Rebate Credit.
- File a 2021 tax return – Even if you didn’t file in 2021, you can still submit a return now to claim your refund.
- Use IRS tools – Visit IRS.gov to find resources, check for missing refunds, and download tax forms.
- Consult a tax professional – If you need help, consider working with a tax expert to maximize your refund.
Frequently Asked Questions (FAQs)
1. Can I still claim my refund after April 15, 2025?
No. Once the deadline passes, any unclaimed tax refund money becomes property of the U.S. Treasury, and you will no longer be able to claim it.
2. What if I never received my 2021 stimulus check?
You may still be eligible for the Recovery Rebate Credit. Filing your 2021 return could help you claim any missing stimulus payments.
3. Do I have to pay a penalty for filing late?
If you are due a refund, there is no penalty for filing late. However, if you owe taxes, you may face penalties and interest.
4. What if I don’t have my 2021 tax documents?
You can request a free transcript of your income from the IRS at IRS.gov or contact your employer for copies of W-2 forms.
5. What if I moved since 2021?
If you moved, ensure that the IRS has your correct mailing address to receive any refund check or direct deposit information.
Final Thoughts
With more than $1 billion in unclaimed refunds, there’s a good chance you or someone you know may be owed money. If you haven’t filed a 2021 tax return yet, take action now before the deadline on April 15, 2025. Even if you don’t think you’re eligible, it’s worth checking—there’s nothing to lose and potentially hundreds or even thousands of dollars to gain!