The IRS has recently estimated how many people in each state may be entitled to a tax refund if they have not filed their tax return for the tax year 2021. You can see at the IRS official website or below about how much tax refund you can claim.
Although the average potential refund is $781, the maximum can be $995 for an estimated 73,000 number of New York taxpayers, and the lowest can be $600 for an estimated 116,300 number of California taxpayers. If you don’t want to see your unclaimed 2021 tax refund as property of the U.S. Treasury, then claim it until the three-year opening window of 15 April 2025.
Unclaimed 2021 Tax Refunds
The IRS has recently highlighted details about unclaimed tax refunds from the 2021 tax years. Over $1 billion in refunds remain unclaimed for almost 1.1 million taxpayers across the nation. The median refund amount for 2021 is estimated at $781 but it doesn’t include tax credits like Recovery Rebate Credit (RRC) or Earned Income Tax Credit (EITC).
It means half of the refunds are less than $781 and half are more. According to the IRS, failure to file will result in loss of more than just their refund of taxes withheld or paid during 2021. For example, the maximum worth of EITC for 2021 is $6,728, depending on income and family size. For 2021, the income EITC limits were:
Income Eligibility for Earned Income Tax Credit (EITC)
| Filing Status | Income Limit (Without Children) | Income Limit (1 Child) | Income Limit (2 Children) | Income Limit (3+ Children) |
|---|---|---|---|---|
| Single / Head of Household | $21,430 | $42,158 | $47,915 | $51,464 |
| Married Filing Jointly | $27,380 | $48,108 | $53,865 | $57,414 |
State-Wise estimated overview of due 2021 Income Tax Refunds
The IRS has also released a state-wise breakdown of unclaimed 2021 income tax refunds data with estimated numbers of individuals, median potential refund amount and total potential refunds. In which some states like Massachusetts, New York, Pennsylvania, and Rhode Island are eligible for a median refund of more than $900.
While some states including South Carolina, New Jersey, Montana, Minnesota, Idaho, and Arizona can get a potential median refund of less than $700 excluding credits. In Pennsylvania, 53,100 estimated number of taxpayers who have not filed their 2021 tax return are eligible to receive a total refund of $52,121,800, which translates to a highest median potential refund amount of $993.
What if you don’t file Unclaimed 2021 Tax Refunds?
If you are one of the taxpayers who have Unclaimed 2021 Tax Refunds, you are required to file taxes to get your refund. Typically, the IRS allows taxpayers to file taxes for up to 3 prior years and if they don’t file taxes within three years, their unclaimed funds become the property of the U.S. Treasury.
The three year deadline to file Unclaimed 2021 Tax Refunds will end on 15 April 2025. Things will be little different this year from the previous one because last December the IRS announced a maximum of $1,400 to eligible taxpayers who have left their RRC field blank or filled out $0 on their tax returns.
These amounts were varied for taxpayers based on their specific circumstances and the payments distribution remained active until late January 2025. Almost $2.4 billion fund for these unclaimed credit was decided to distribute among eligible taxpayers. These payments were distributed in automic nature with an initial letter notified about their eligibility and payments details.
If a taxpayer has not filed their tax returns for 2022 and 2023, the IRS alerts them that their refunds for 2021 may be withheld. They have also said that any 2021 refunds will also be applied to pay any outstanding balances owed to the IRS or a state tax agency. It can also be used to pay off past-due federal debts like student loans or unpaid child support.
How can I file Unclaimed 2021 Tax refunds?
Filing your unclaimed 2021 tax refund is easy but you have to first collect key required documents. The IRS has reminded taxpayers about several available options to get their past information, which will be required to file 2021 taxes.
- Individuals can view, download or print tax records and transcripts through login or by creating an Individual Online Account at IRS.gov.
- Taxpayers can also request copies from their employer, bank or other payers for missing forms like W-2, 1098, 1099 or 5498 for the respective tax years.
- Taxpayers can also get their tax return or tax return transcript through mail by utilizing “Get Transcript by Mail” on IRS.gov if both of the above ways are not available or accessible. You can also get an automated phone transcript service by calling 800-908-9946.
- Taxpayers can also file Form 4506-T to get a a wage and income transcript from the IRS. The wage and income transcript allows taxpayers to get data, which will be used to file taxes, such as Forms W-2, 1099, 1098, Form 5498, and IRA contribution information.
Unclaim 2021 Tax Refund—click here to file Tax Refund
After collecting all the required details, fill the tax return form by claiming credit for which you are eligible and then submit the return until the available deadline. Upon submission, taxpayers can track the status of their return through the Where’s My Refund tool.