The Internal Revenue Service announced today that more than 1.1 million people nationwide have unclaimed refunds for tax year 2021, but face an April 15 deadline to file their tax returns.
The IRS estimates that more than $1 billion in refunds remain unclaimed by taxpayers who have not filed their Form 1040, Federal Income Tax Return, for tax year 2021. The IRS estimates the median refund amount is $781 for 2021. That means half of the refunds are more than $781 and half are less. This estimate does not include the Recovery Rebate Credit or other credits that may apply.
Under the law, taxpayers generally have three years to file and claim their tax refunds. If you don't file within three years, the money becomes the property of the U.S. Department of the Treasury.
The following state-by-state table shows the number of people potentially eligible for these refunds and the estimated average refund per state.
If they don't file a tax return, people risk losing more than just a refund of taxes withheld or paid during 2021. Many low- and moderate-income workers may be eligible for the Earned Income Tax Credit (EITC). In 2021, the EITC was worth up to $6,728 for taxpayers with qualifying children. The EITC helps individuals and families whose income falls below certain thresholds. The thresholds for 2021 were:
$51,464 ($57,414 if married filing jointly) for those with three or more qualifying children;
$47,915 ($53,865 if married filing jointly) for individuals with two qualifying children;
$42,158 ($48,108 if married filing jointly) for those with one qualifying child; and
$21,430 ($27,380 if married filing jointly) for individuals with no qualifying children.
The IRS reminds taxpayers seeking a 2021 tax refund that their refunds may be withheld if they haven't filed tax returns for 2022 and 2023. Additionally, any refund amount for 2021 will be applied to amounts still owed to the IRS or a state tax agency and can be used to offset unpaid child support or other past-due federal debts, such as student loans.
Current and prior-year tax forms (such as Forms 1040 and 1040-SR for tax year 2021) and instructions are available on the Forms and Instructions page of IRS.gov or by calling toll-free 800-TAX-FORM (800-829-3676).
Need to file a 2021 tax return? There are several options for obtaining key documents.
The IRS reminds taxpayers that there are ways to gather the information they need to file their 2021 tax return. However, individuals should start now to ensure they have enough time to file before the April deadline for 2021 refunds. Here are some options:
Create or log in to an IRS individual online account: The fastest and easiest way for individuals to view, download, or print tax documents and transcripts is to create or log in to their individual online account on IRS.gov. There, they can find transcripts of previous tax returns, tax account information, wage and income statements, and verification of non-filing letters.
Request copies of key documents: Taxpayers who are missing Forms W-2, 1098, 1099, or 5498 for 2021, 2022, or 2023 can request copies from their employer, bank, or other payers.
Get a transcript by mail: Taxpayers who cannot obtain missing forms from their employers or other payers and cannot access their individual account online can obtain a tax return or tax account transcript by mail using Get Your Tax Records and Transcripts by Mail on IRS.gov. Taxpayers can also request a transcript by mail by calling the automated telephone transcription service at 800-908-9946.
Request a Wage and Income Transcript: Another option is for individuals to file Form 4506-T with the IRS to request a wage and income transcript. A wage and income transcript shows data from information returns received by the IRS, such as Forms W-2, 1099, 1098, Form 5498, and IRA contribution information. Taxpayers can use the information.
Comments