(Thechieftainspear) – The IRS is urging more than 1.1 million taxpayers to claim their 2021 federal income tax refunds before the April 15 deadline, or they risk forfeiting their money to the U.S. Treasury.
According to officials, an estimated $1 billion in refunds remains unclaimed, with the median potential refund hovering around $781 per taxpayer.
Taxpayers Have Limited Time to Claim Refunds
Under federal law, individuals typically have three years to file and collect their refunds. If a tax return is not submitted within that timeframe, the money becomes government property and is no longer accessible to the taxpayer.
In addition to a refund, those who qualify may also miss out on valuable tax credits, such as the Earned Income Tax Credit (EITC)—which was worth up to $6,728 in 2021 for eligible low- to moderate-income earners. Others might be eligible for the Recovery Rebate Credit, which could increase their refund amount.
Unclaimed Refunds by State
Among the millions of unclaimed refunds, California has the highest number of eligible taxpayers, with over 116,000 residents potentially owed a refund. The median refund for Californians is estimated at $600, though individual amounts vary.
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Other states with a high number of unclaimed refunds include Texas (102,200 taxpayers), New York (73,000 taxpayers), and Florida (69,800 taxpayers).
Additional Benefits of Filing
Filing a 2021 tax return before the deadline could also help individuals settle outstanding financial obligations, such as unpaid taxes, child support, or federal student loans.
Taxpayers who need documentation to file can access prior-year wage and income statements, tax transcripts, and tax forms through IRS.gov. However, the agency warns that retrieving these documents may take several weeks. Missing tax forms can also be obtained from employers, banks, or financial institutions.
Additionally, the IRS notes that refunds for 2021 tax returns may be delayed if taxpayers have yet to file their 2022 and 2023 returns.
To avoid missing out on a potential refund, eligible taxpayers are encouraged to file as soon as possible before the April 15 deadline.
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