The Internal Revenue Service (IRS) has issued a warning that more than a million taxpayers are still eligible to receive a share of more than $1 billion in refunds—but they need to act quickly. Here’s what you need to know.
Over $1 billion in refunds still to be claimed
The refunds are due to people who have yet to file their 2021 tax return. The IRS says the total potential value of the refunds still to be claimed is estimated to be $1,025,336,800.
As many as 1,142,000 taxpayers are eligible for part of that payout and the median refund amount is estimated to be $781 per taxpayer, the agency says. That means half of the people who are due refunds will receive more than that amount and half less.
The 2021 tax season was an especially chaotic one, as the COVID-19 pandemic had hindered both IRS operations and people’s ability file their taxes on time. The increased burden of pandemic-era stimulus checks, which fell on the IRS to distribute, added to the chaos.
April 15 deadline to claim refund is fast approaching
The average taxpayer’s 2021 tax return was due in 2022, but as of the IRS’s notification earlier this week, 1.1 million taxpayers still need to file that return.
However, if they file the return later than three years after it is due, they will lose their right to claim any tax refunds due to them.
“Under the law, taxpayers usually have three years to file and claim their tax refunds,” the IRS notes. “If they don’t file within three years, the money becomes the property of the U.S. Treasury.”
And the three-year deadline for claiming tax refunds associated with a 2021 return is about to pass. That deadline is April 15, 2025—just one month and one day away from the time of this writing.
The IRS also notes that these people may be missing out on more than just a refund of taxes paid or withheld during 2021. By not having filed their tax returns, they could also be missing out on other refunds, including the Earned Income Tax Credit (EITC), which could be worth as much as $6,728 for those taxpayers with qualifying children.
Refunds due across all 50 states
The estimated $1.1 billion pot of refunds still due to taxpayers for the 2021 tax year includes people in every state, according to the IRS. The agency has broken down the estimated number of individuals still due the refund per state as well as the estimated median potential refund due.
- Full list: State-by-state breakdown of tax refunds still owed
The state with the highest estimated number of individuals due a refund is Texas, with 102,200 individuals thought to be due for the refund. The median potential refund in Texas is $810.
The state with the highest median potential refund due is New York, which has a potential refund due of $995 per individual. In New York, it is estimated that as many as 73,000 individuals are still due the refund.
You can read the IRS’s full advice for claiming the refund due here.
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