Over 1.1 Million Americans Could Lose Their 2021 Refunds—Here’s What You Need to Know
If you haven’t filed your 2021 federal income tax return, you could be leaving hundreds or even thousands of dollars on the table. The IRS estimates that over $1 billion in unclaimed tax refunds from the 2021 tax year will expire on April 15, 2025, if taxpayers don’t take action.
According to IRS data, over 1.1 million people across the U.S. have yet to file their 2021 Form 1040, with a median potential refund of $781—not including valuable tax credits like the Earned Income Tax Credit (EITC).
If you think you might be one of the people owed money, here’s how to claim your refund before the deadline.
Who Is Owed a Refund?
This unclaimed money belongs to individuals who did not file a federal tax return for the 2021 tax year (which was originally due in April 2022). If you had income in 2021 and taxes were withheld from your paycheck—or if you were eligible for tax credits but didn’t file—you could be owed money.
💰 State-by-State Breakdown:
- In New York, an estimated 73,000 residents haven’t filed their 2021 tax return, leaving over $72 million in potential refunds unclaimed.
- In Pennsylvania, Massachusetts, and Rhode Island, the median unclaimed refund exceeds $900 per taxpayer.
Even if you think you weren’t required to file in 2021, you may still be eligible for a refund. The only way to claim it is by submitting your tax return before April 15, 2025.
What Tax Credits Might You Be Missing?
In addition to your regular refund, failing to file could mean missing out on the Earned Income Tax Credit (EITC)—one of the most valuable tax credits available to low- and moderate-income workers.
For the 2021 tax year, the EITC was worth up to $6,728 based on income and family size. The eligibility thresholds were:
🔹 $51,464 ($57,414 if married filing jointly) – Three or more qualifying children
🔹 $47,915 ($53,865 if married filing jointly) – Two qualifying children
🔹 $42,158 ($48,108 if married filing jointly) – One qualifying child
🔹 $21,430 ($27,380 if married filing jointly) – No qualifying children
If you qualified for the EITC but never filed your 2021 return, you could be owed a much larger refund than you expect.
How to Claim Your 2021 Tax Refund Before It Expires
To receive your refund, you must file your 2021 tax return with the IRS before April 15, 2025. Here’s how:
1️⃣ Gather Your 2021 Tax Documents:
- W-2 forms from employers
- 1099 forms for freelance work, interest, or other income
- 5498 forms for IRA contributions
- Any other financial records from 2021
🔎 Need your old tax documents?
- Use the IRS “Get Transcript” tool to request a copy of your past W-2 or 1099 forms.
- Contact past employers or financial institutions if you don’t have the records.
2️⃣ Download & Complete IRS Form 1040 for 2021
- You must file a paper return for prior years.
- Download the 2021 Form 1040 and instructions from the IRS website.
3️⃣ Mail Your Completed Return to the IRS
- Unlike current tax filings, old tax returns cannot be e-filed—they must be mailed.
- The correct mailing address depends on your state and whether you include a payment.
⏳ Important: If you’re owed a refund, there’s no penalty for filing late. However, refunds for 2021 will be lost if not claimed by April 15, 2025.
What If You Haven’t Filed 2022 or 2023 Taxes?
Even if you submit your 2021 return on time, your refund may be withheld if you have not yet filed tax returns for 2022 and 2023. The IRS requires taxpayers to be up to date on filings before issuing refunds.
Additionally, if you owe the IRS, state tax agencies, child support, or student loans, your refund may be applied toward those debts before you receive any remaining balance.
Don’t Miss the April 15 Deadline!
Time is running out to claim your 2021 tax refund. If you don’t file your return before April 15, 2025, your money will become the property of the U.S. Treasury—meaning you won’t be able to get it back.
📢 Key Takeaways:
✅ Over $1 billion in unclaimed refunds from 2021 will expire soon
✅ The median refund is $781—but some are worth over $1,000
✅ The only way to claim your refund is to file your 2021 tax return by April 15, 2025
✅ You may also qualify for the Earned Income Tax Credit (EITC), worth up to $6,728
✅ If you haven’t filed 2022 or 2023 taxes, your refund may be withheld
🔎 Need Help? Visit the IRS website for official guidance, or consult a tax professional to ensure you don’t miss out on money that belongs to you.
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