Over $1 billion in unclaimed tax refunds: Act before April 15, 2025
The IRS recently announced that taxpayers have a limited window to claim more than $1 billion in unclaimed tax refunds from 2021.
The deadline to file and receive these refunds is April 15, 2025. If you haven't filed your 2021 tax return yet, this is your last chance to claim the money before it disappears forever.
Why are these refunds unclaimed?
Many taxpayers, especially students, part-time workers, or those with low income, may not have been required to file a return in 2021.
However, if federal taxes were withheld from their wages, they could be entitled to a refund.
Some common reasons why people haven’t filed include:
- They didn’t realize they earned enough income to file.
- They thought they wouldn’t receive a refund.
- They missed the deadline but can still claim it under the three-year rule.
Who is eligible for a 2021 tax refund?
If you had federal tax withheld from your paycheck in 2021 or made estimated tax payments, you might qualify for a refund.
Even if you had little or no tax liability, you could still receive money back through refundable credits such as:
Earned Income Tax Credit (EITC)
- The EITC helps low-to-moderate-income workers get a tax refund.
- In 2021, it was worth up to $1,502 for single filers and $6,728 for families with three or more children.
- Many people who qualify don’t claim it because they don’t realize they’re eligible.
How to claim your refund
1. File your 2021 tax return before April 15, 2025
To get your refund, you must file your 2021 tax return with the IRS before the deadline. After April 15, 2025, unclaimed refunds will become the property of the U.S. Treasury.
2. Gather your documents
To file, you’ll need:
- Your W-2s or 1099s from 2021
- Any other tax forms related to income or tax payments
- Bank account details (for direct deposit of your refund)
3. Use tax preparation services
Filing a return from a past year can be tricky, especially if you don’t have all your documents.
A tax professional can help you retrieve missing records and ensure you claim every credit available to you.
What happens if you have unpaid taxes from other years?
If you owe taxes from previous years, the IRS may apply your 2021 refund to your outstanding balance.
Additionally, your refund could be reduced if you have:
- Unpaid child support
- Federal debts (such as student loans)
- State tax obligations
Don’t leave your refund behind!
With over $1 billion in unclaimed refunds, thousands of taxpayers are owed money they might never receive. The clock is ticking—file your 2021 return before April 15, 2025 to ensure you get what’s yours!
If you need help filing your back taxes, Taxes for Expats can assist you in claiming your refund before the deadline.
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