“Over a Million Americans Have Not Claimed $1 Billion in Tax Refunds – Are You Among Them?”

The Internal Revenue Service (IRS) in the United States has issued a warning that approximately 1.1 million Americans have not claimed their tax refunds for the year 2021, totaling over 1 billion dollars. If action is not taken soon, these refund claims will expire after April 15, 2025.

The IRS reminds that every year, many individuals qualify for tax refunds, but not everyone ends up receiving this money. Due to reasons such as delayed tax filings or believing they are not required to file taxes, some individuals have missed out on substantial funds owed to them by the IRS.

In their announcement, the IRS stated, “Failure to file tax returns may result not only in losing out on 2021 refunds from withholding or payments made, but also potentially missing out on additional tax benefits.”

According to IRS estimates, the median refund amount for 2021 is $781, excluding the Recovery Rebate Credit or other possible credits applicable to specific tax returns.

The IRS announcement further states, “Many low and moderate-income workers may be eligible to apply for the Earned Income Tax Credit (EITC).” In 2021, qualifying individuals could receive up to $6,728 through the EITC.

This benefit is applicable to taxpayers with eligible children. The thresholds for EITC benefits vary based on household income and size. In 2021, the income limits for EITC were: $51,464 for taxpayers with three or more eligible children, $47,915 for two eligible children, $42,158 for one eligible child, and $21,430 for those with no eligible children.

Additionally, the IRS points out in the announcement that if taxpayers have not filed their tax returns for 2022 and 2023, their refunds for claiming the 2021 tax year may be temporarily withheld and potentially used to offset debts such as taxes, child support, or student loans.

To claim the aforementioned refunds, taxpayers must submit the 2021 Form 1040, the federal income tax return, by April 15, 2025. After this deadline, the over 1 billion dollars in unclaimed refunds will no longer be available for claiming and will revert to the U.S. Treasury.

Gathering past years’ tax documents for filing amendments may be challenging, but the IRS states that taxpayers still have various ways to obtain needed financial information, such as tax records from 2021.

The IRS website’s “Individual Online Account” can assist taxpayers in accessing past tax return records, tax account information, wage and income statements, as well as proof of non-filing. If taxpayers lack forms like W-2, 1098, 1099, or 5498, they can request copies from employers, banks, or other payers.

If unable to obtain these forms or access the “Individual Online Account,” taxpayers can also request tax records or account information via “Get Transcript by Mail” service or use the automated telephone transcript service.

Another option is to submit Form 4506-T to request wage and income statements. However, processing these requests may take several weeks, so the IRS recommends taxpayers first try other methods.

Individuals looking to amend their tax returns for 2021 or other years can obtain the corresponding 1040 forms through the “Forms and Instructions” page on the IRS website or call the toll-free assistance hotline 800-TAX-FORM (800-829-3676) for help.