The clock is ticking for taxpayers who haven’t filed their 2021 tax returns. The Internal Revenue Service (IRS) recently announced that over 1.1 million people across the United States are eligible to claim more than $1 billion in unclaimed refunds for the 2021 tax year. However, the deadline to file and claim these refunds is fast approaching—April 15, 2024. If you haven’t filed yet, now is the time to act.
Why Are There So Many Unclaimed Refunds?
Many taxpayers may not realize they are owed a refund for the 2021 tax year. Some may have had too little income to require filing a tax return, while others may have simply forgotten or overlooked the process. However, failing to file means leaving money on the table—money that could make a significant difference in your financial situation.
The IRS estimates that the median refund amount for 2021 is $781, meaning half of the refunds are higher and half are lower. This figure doesn’t even include potential credits like the Recovery Rebate Credit or the Earned Income Tax Credit (EITC), which could increase your refund significantly.
The Stakes Are High
Under U.S. tax law, taxpayers typically have three years to file and claim their refunds. If you don’t file by the April 15, 2024, deadline, your refund will become the property of the U.S. Treasury. In other words, if you don’t claim it, you lose it.
But it’s not just about the refund itself. Many low- and moderate-income workers may be eligible for the Earned Income Tax Credit (EITC), which was worth up to $6,728 for taxpayers with qualifying children in 2021. Missing out on filing your return could mean losing access to this valuable credit.
Who Is Eligible?
If you didn’t file a tax return for 2021, you may be eligible for a refund if:
- Your employer withheld federal income tax from your pay.
- You made estimated tax payments.
- You qualify for refundable tax credits like the EITC.
The IRS has provided a state-by-state breakdown of the estimated number of individuals who may be due a refund, along with the median potential refund amount. For example:
- California: 116,300 individuals, median refund of $600.
- Texas: 102,200 individuals, median refund of $810.
- New York: 73,000 individuals, median refund of $995.
How to Claim Your Refund
If you need to file a 2021 tax return, don’t worry—there are several ways to gather the necessary documents and get started:
- Create or Log in to Your IRS Online Account:
The fastest way to access your tax records is through the IRS Individual Online Account. Here, you can view, download, or print past tax returns, wage and income statements, and other key documents. - Request Copies of Key Documents:
If you’re missing Forms W-2, 1098, 1099, or 5498, contact your employer, bank, or other payers to request copies. - Get a Transcript by Mail:
If you can’t access your documents online, you can request a tax return or wage and income transcript by mail using the IRS’s Get Transcript by Mail service. You can also call 800-908-9946 to request a transcript. - File Form 4506-T:
Another option is to file Form 4506-T to request a wage and income transcript. This document shows data from information returns received by the IRS, such as W-2s and 1099s. Keep in mind that this process can take several weeks, so start early.
What to Keep in Mind
While claiming your refund is important, there are a few things to keep in mind:
- If you haven’t filed your 2022 and 2023 tax returns, the IRS may hold your 2021 refund until those returns are processed.
- Your refund may be applied to any outstanding federal or state tax debts, unpaid child support, or other federal debts like student loans.
State-by-State Refund Estimates
Here’s a quick look at the estimated number of individuals and median refund amounts by state:
| State or District | Estimated Individuals | Median Refund | Total Potential Refunds* |
|---|---|---|---|
| California | 116,300 | $600 | $92,299,600 |
| Texas | 102,200 | $810 | $94,792,200 |
| New York | 73,000 | $995 | $72,477,100 |
| Florida | 69,800 | $732 | $61,087,200 |
| Pennsylvania | 53,100 | $993 | $52,121,800 |
| Illinois | 44,500 | $892 | $42,482,800 |
| Ohio | 39,400 | $762 | $34,735,100 |
| Georgia | 38,500 | $720 | $33,515,300 |
| North Carolina | 35,800 | $719 | $30,754,100 |
| Washington | 35,200 | $880 | $33,716,000 |
*Excluding credits.
Don’t Wait—Act Now!
With the April 15 deadline just around the corner, there’s no time to waste. If you haven’t filed your 2021 tax return, take action today to claim your refund. Whether you’re owed a few hundred dollars or several thousand, this money belongs to you—don’t let it slip away.
For more information, visit the IRS website or call 800-TAX-FORM (800-829-3676) to request the necessary forms and instructions. You can also download the 2021 tax forms directly from the IRS:
Remember, the sooner you file, the sooner you can put that money back in your pocket.
