Claim Your Tax Refund: Over $1 Billion Awaiting for 2021 Tax Filers
According to the IRS, more than 1.1 million individuals have yet to claim their federal income tax refunds for the tax year 2021. This unclaimed amount exceeds $1 billion, and with the April 15 deadline approaching, these funds are at risk of reverting to the federal government.
Filing Deadline and Important Considerations
Taxpayers typically have three years from the due date of their tax return to file and secure their refunds. If they fail to do so within this timeframe, the funds will become the property of the U.S. Treasury, as stated on the IRS website.
The IRS notes that the median refund for those who have not yet filed their 2021 tax returns is approximately $781, indicating that many individuals are at risk of losing substantial amounts of money.
Additional Benefits of Filing
In addition to potentially losing unclaimed cash, individuals may also miss out on credits such as the Earned Income Tax Credit (EITC). For 2021, the EITC was worth up to $6,728 for qualifying low- to moderate-income households. Taxpayers could also benefit from the Recovery Rebate Credit, which has not been included in the current estimates.
Another advantage of filing returns includes the possibility of applying the refund towards outstanding obligations, notably child support, unpaid taxes, or federal commitments like student loans.
State-by-State Breakdown
Of the 1.1 million taxpayers eligible for a refund, over 116,000 reside in California, where the median refund is about $600. Below is a detailed list of estimated individuals due for 2021 tax refunds across various states, along with median refund amounts:
| State or District | Estimated Individuals | Median Refund | Total Potential Refunds* |
|---|---|---|---|
| Alabama | 18,100 | $743 | $16,048,100 |
| 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 |
How to Access Filing Information
Taxpayers needing assistance with their 2021 tax return can obtain wage and income statements, tax transcripts, or even prior-year tax forms from the IRS website, although they should anticipate a wait, as this process may take several weeks. Copies of missing tax documents can also be requested from employers or financial institutions.
It is essential to note that refunds from 2021 may be delayed if returns for the following years (2022 and 2023) have not been filed.
